The U.S. Department of Justice on Friday sued a major real estate firm, alleging the company's algorithmic software enables landlords across the country to set rent at artificially high rates. The lawsuit, joined by several states including California, focuses on software from Texas-based company RealPage. The software is used by many landlords to set rent prices for both vacant units and renewal rates for existing tenants.
But in its complaint, the Justice Department pointed to instances where RealPage described its software as a tool for maximizing rent and outperforming the market. Authorities also alleged the company made it more difficult for landlords to reject its recommendations than accept them.
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