RealPage Faces DOJ Lawsuit Over Allegations of Rental Price Manipulation
RealPage's Algorithms Allegedly Rig the Rental Market
If you’ve rented an apartment in the US in the last several years, you may have felt that the pricing system was unfair. The US Department of Justice (DOJ) has initiated a civil lawsuit claiming that RealPage's algorithm plays a significant role in systematically coordinating rental prices, thereby violating longstanding laws. The company’s software allegedly enables landlords to submit rental rate data that the algorithm uses to suggest prices, which hinders true competition.
DOJ Claims Against RealPage
- The lawsuit asserts that RealPage's systems manage pricing for around three million housing units nationwide.
- RealPage allegedly controls 80% of the revenue management software market for landlords.
- Officials indicate this is the first civil action against a company for algorithmic pricing violations.
The Wider Implications
The DOJ's case, now supported by eight state attorneys general, represents a major escalation in regulating business practices within the real estate sector. As market pressures mount, and with increasing scrutiny on algorithm-driven businesses, this lawsuit may prompt significant changes in how housing prices are set across the country.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.