The firm's software is used by property owners to optimize their rental income
of ConsumerAffairsThe federal government is suing RealPage, a rental software firm, over alleged price-fixing that inflates rents for tenants. The lawsuit accuses RealPage of using confidential data to help landlords coordinate rent prices, violating antitrust laws.
RealPage denies the claims but has made changes to allow landlords to opt out of using nonpublic data.
Ill-informed legislation seeking to ban the responsible use of nonpublic price data will not lower rent prices, said Jennifer Bowcock, a RealPage spokeswoman.
Meanwhile, cities like San Francisco and Philadelphia have passed laws restricting the use of rent-pricing software, with similar measures being considered in other states. These laws aim to prevent the misuse of confidential data and give tenants more protections.
Critics argue the focus should be on increasing housing supply to address rising costs.
Three million apartments
In August, the Justice Department and eight state attorneys general sued RealPage, allegingthe company illegally collects and crunches confidential data to help landlords set rents, an arrangement prosecutors said results in inflated rents for tenants, while also violating antitrust laws.
There are also numerous private class-action lawsuits pending.
While lawsuits move through the courts, many lawmakers are going on the offensive, pressured by voter who want housing costs reduce.
We are living in a time where were not waiting for AI and algorithms to get here. Theyre here, said Nicolas ORourke, a city councilman in Philadelphia in a Bloomberg News report.ORourke sponsored the bill banning the use of certain rent-pricing software that passed the council in a 17-to-0 vote last month.
Regulators don't usually pursue antitrust actions in the housing field but with housing costs soaring and voters demanding action,the Federal Trade Commission, the Justice Department and state attorneys general have begun taking action against large landlords, the home-sales industry and rental management software.
Whether the Trump Administration will continue to pursue the issue isn't known. FTC Chair Lina Khan has been agressively mounting antitrust actions against Big Tech. Bothincoming Vice President JD Vanceand attorney general nominee Matt Gaetzhave praised her actions.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-20 21:19:32
