RealPage Inc. has launched a legal offensive against the city of Berkeley, asking a federal judge to halt an upcoming ordinance that would ban the use of rent-pricing algorithms. The lawsuit, filed Wednesday, argues that the ordinance is an unconstitutional restriction on free speech and is based on “groundless” accusations that algorithmic pricing has driven up rental costs.
A Sweeping Ban on Data-Driven Pricing
The controversial Berkeley ordinance, set to take effect on April 24, prohibits the use of software to set or recommend rental prices, citing concerns that such tools contribute to price-fixing and housing instability. RealPage, whose revenue management software provides rental price suggestions based on market data, claims the city is unlawfully restricting access to information.
“The ordinance regulates speech — specifically, the creation and dissemination of information,” RealPage contends. “The First Amendment protects the right to generate, use, and share information. There is no ‘landlord’ or ‘algorithm’ exception to these rights.”
