Justice Department Sues Six Major Landlords for Algorithmic Pricing Scheme that Harms Millions of American Renters Nationwide

0
1092
  • Using competitors’ competitively sensitive data to train or run any pricing model.
  • Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor.
  • Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.

Real-World Impact on Renters

From my experience in covering legal and insurance matters, such a far-reaching antitrust suit suggests major implications for renters nationwide. If proven true, the allegations indicate that apartment dwellers may have overpaid for years, caught in a market shaped less by natural supply-and-demand and more by a carefully orchestrated pricing strategy.

While it’s uncertain how soon any potential relief might reach tenants, the mere act of challenging these alleged rent-fixing practices signals a turning point for housing rights. It’s not every day you see the DOJ take such a direct shot at algorithms used behind the scenes.