Edina Realty Fined $3.5 Million for Secret Payments

Edina Realty has agreed to a $3.5 million settlement with the Minnesota Attorney General's Office over allegations that it received undisclosed payments from Home Security of America (HSA) to promote HSA's home warranties to its clients. The Attorney General, Keith Ellison, stated that Edina misled consumers by failing to disclose these payments, thus breaching its fiduciary duties under Minnesota law. As part of the settlement, Edina will provide refunds to affected clients and is prohibited from future partnerships with companies that pay for product promotion. The investigation highlighted that Edina's practices may have led consumers to mistakenly believe HSA's warranties were endorsed products with substantial benefits. Despite the settlement, Edina Realty has disputed the allegations, arguing that such advertising agreements are common in the industry and asserting that they provided necessary disclosures to customers. The settlement aims to recover funds for clients and prevent similar practices in the future.