The Justice Department is suing the company behind a widely used software that helps landlords set rental prices. It alleges that RealPage’s rent recommendation algorithm drives up prices and “deprives renters of the benefits of competition on apartment leasing terms.”
In the complaint, the DOJ, along with eight states, claim that RealPage obtains nonpublic rental price information from competing landlords who use the software. RealPage then allegedly feeds this information into its algorithmic pricing software, which landlords can use to get suggestions about their rent rates.
When landlords collude to delegate pricing decisions to algorithms, renters can lose out on the benefits of competition and face higher rates. I called on the...
