Summary
RealPage, a property management company, faces accusations of price fixing through its AI-driven rental pricing algorithm, which allegedly enables landlords to coordinate rent increases and share sensitive market data. A lawsuit from the U.S. Department of Justice claims this practice has contributed to rising rents, affecting millions of renters across the country.
The controversy centers on how RealPage’s software allows landlords to access proprietary data about rental rates and occupancy, which they then use to set prices in a manner that undermines competition. According to the DOJ, this leads to collusion among landlords who would otherwise compete, effectively manipulating the rental market. The software’s influence is particularly pronounced in major markets, where it reportedly controls a significant share of rental revenue management. Legal experts warn that this situation raises broader questions about the implications of algorithms in pricing strategies, suggesting that such technologies could facilitate anti-competitive behavior without traditional forms of collusion. Lawmakers are also taking notice, with some investigating the use of RealPage’s software among Massachusetts landlords amid these allegations.
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Lawmakers want to know whether Mass. landlords use software accused of price-fixing scheme
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