DOJ Sues Landlord Software Company RealPage for Inflating Americans’ Rents

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The lawsuit alleges that the Texas company intentionally fed competing landlords' nonpublic information about rental rates into its rent suggestion algorithms, resulting in anti-competitive recommendations that raised rents across markets.

© The Department of Justice on Friday filed an antitrust lawsuit against the real estate software company RealPage © Tada Images

“By feeding sensitive data into a sophisticated algorithm powered by artificial intelligence, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices—undermining competition and fairness for consumers in the process,” Deputy Attorney General Lisa Monaco said in a statement. “Training a machine to break the law is still breaking the law.

Another landlord that used RealPage’s YieldStar algorithm allegedly told the company that within 11 months of adopting the tool they had increased rents by more than 25 percent and had brought competitors prices up as a result. A RealPage executive allegedly responded that it was a “great case study,” according to the complaint.

 

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