Connecticut Attorney General William Tong joined with the US Department of Justice and the Attorneys General of North Carolina, California, Colorado, Minnesota, Oregon, Tennessee and Washington to file a lawsuit against RealPage Inc. on August 23.
The lawsuit alleges that RealPage was involved in efforts to decrease competition among landlords in apartment pricing, and in the process monopolize the market for commercial revenue management software for landlords.
The complaint alleges that RealPage, based in Texas, contracts with competing landlords who share with the company nonpublic sensitive information about rental rates and lease terms. This information is used to train an algorithm that suggests pricing leasing terms for landlords, which the complaint alleges allows landlords to avoid competitive pricing and actions, hampering the free market and typically raising rents.
“We know that renters across Connecticut and our country are already struggling to afford high rent prices. RealPage allegedly used their algorithm to take advantage of vulnerable renters by restricting competition, thus depriving them of the affordable housing everyone deserves,” said Attorney General Tong in a press release. “I thank Attorney General Garland and the Justice Department for their partnership in aggressively defending renters and consumers against such egregious antitrust violations.”
“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” said U.S. Attorney General Merrick B. Garland. “We allege that RealPage’s pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents. Using software as the sharing mechanism does not immunize this scheme from Sherman Act liability, and the Justice Department will continue to enforce antitrust laws and protect the American people from those who violate them.”
