The Rent-to-Own Industry and Pricing Disclosure Tactics

The authors investigate the retail pricing tactics of the rent-to-own (RTO) industry through an examination of a recent court ruling and primary data. More specifically, the authors describe a typical RTO transaction and analyze a recent court case that is representative of current rulings. Next, the authors conduct a qualitative investigation of consumers’ experiences with RTO retailers that is grounded in public/social policy theory involving impoverished consumers. The article ends with a discussion of retail pricing options and disclosure requirements, as well as grass-roots opportunities for consumer protection.