Upbound Group
UPBD
Information Technology
2
exclusion reasons
1 theme
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Upbound Group, Inc. (formerly Rent-A-Center) operates a virtual lease-to-own business primarily through its Acima subsidiary, which the Consumer Financial Protection Bureau sued in July 2024. The CFPB complaint alleges Acima used “deceptive dark patterns” to obscure the true cost of agreements, hid key contract terms in fine print or behind pop-ups, and failed to provide required disclosures. The Bureau is seeking consumer redress and civil penalties. Upbound Group reported total revenue of $4.2 billion in 2022, with the virtual lease-to-own segment representing a significant and rapidly growing portion of its business following the Acima acquisition. The company’s own 2024 10-K filing acknowledges that being “perceived as engaging in abusive or predatory” practices by media or government agencies poses a material risk to its business.
Upbound Group, through its Acima Holdings subsidiary, is the subject of a Consumer Financial Protection Bureau lawsuit alleging the use of deceptive "dark patterns" to trick consumers. The CFPB complaint, filed in July 2024, states that Acima's digital interfaces were designed to obscure key terms of lease-to-own agreements, misleading customers about their obligations and the true cost of transactions. This regulatory action alleges a business model reliant on extracting value from consumers through intentionally confusing practices. The company's SEC filings acknowledge this litigation as a material risk, noting it could result in significant monetary penalties or changes to its business practices.
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