The Department of Justice settled with RealPage over the alleged rental price fixing of its software

Ministry of Justice The settlement has been announced With RealPage, the widely used rent-setting software that it accused of engaging in collusion to drive up rental prices by sharing previously private information from competing landlords. The settlement places limits on RealPage’s ability to collect and use that data, and prevents it from being used to determine rents.

last year, The Department of Justice and several other states filed an antitrust lawsuit against RealPageclaiming that the company’s rent-setting software collects data from competing landlords to provide daily rental price suggestions. “As competing landlords increase their rents, RealPage prompts other competing landlords to increase their rents as well,” the Justice Department claimed.

If the court approves the Justice Department’s settlement, RealPage must only use data from owners 12 months or older to power its algorithm. The settlement also requires RealPage to “remove or redesign” features that discourage landlords from lowering prices or induce landlords to match their prices with competitors. RealPage will also be prohibited from providing “excessive pricing” information, which Assistant Attorney General Abigail Slater is requesting. It’s explained in a video on X Such as raising rents “block by block.” RealPage He denies any wrongdoing.

“RealPage was trading competition for coordination, and tenants paid the price,” Slater said. “We have reached a settlement that prevents RealPage from coordinating pricing with its customers.”