Landlords will no longer be able to use RealPage’s rent-pricing software to monitor competitors and inflate rents, following a settlement with the Justice Department addressing “algorithmic collusion.” This agreement ends a year of federal antitrust lawsuits against the Texas-based company without requiring RealPage to pay damages or admit wrongdoing; a judge must still approve the settlement.
Under the proposed terms, RealPage cannot utilize real-time data for price recommendations, only permitting the use of private data that is over a year old. This aims to enhance competition in housing markets and ensure that rents are set through market forces rather than algorithms.
RealPage’s attorney defended the software as beneficial to both landlords and renters, claiming it uses aggregated, anonymized data leading to lower rents. However, some critics argue that the settlement is weak, citing potential loopholes that could allow the company to continue influencing the market and lamenting the absence of penalties, unlike other firms facing similar scrutiny.
The issue has garnered attention at state levels, with governors in California and New York recently signing legislation to regulate rent-setting software. Over 20 property management companies have also settled lawsuits related to RealPage’s practices, underscoring growing concerns over data usage in the real estate market.
Source link
