The Department of Justice (DOJ) sued property management software company RealPage on Friday, alleging that the company’s pricing algorithms allow landlords to share sensitive pricing information and increase rents.
The lawsuit, joined by attorneys general from North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee and Washington, alleges that RealPage violated antitrust laws by restricting competition among property owners.
“Americans should not have to pay higher rent because companies collude with landlords to find new ways to break the law,” Attorney General Merrick Garland said in a statement.
“The use of software as a sharing mechanism does not exempt the scheme from Sherman Act liability, and the Department of Justice will continue to vigorously enforce the antitrust laws and protect the American people from violators,” he added.
According to a press release, the Department of Justice alleges that RealPage entered into agreements with competing landlords to share “non-public, competitively sensitive information” about rents, which the company’s algorithmic pricing software used to generate recommendations on prices and other terms.
“By feeding sensitive data into sophisticated algorithms powered by artificial intelligence, RealPage found a modern way to violate a century-old law that systematically fixed rental home prices, undermining competition and fairness for consumers in the process,” Deputy Attorney General Lisa Monaco said in a statement.
