DOJ Accuses RealPage of Price Manipulation in Rental Market
Allegations Against RealPage
The US Department of Justice (DOJ) has filed a lawsuit against [RealPage](https://www.realpage.com/), accusing the company of manipulating rental prices across millions of apartments nationwide. The DOJ claims that RealPage’s software uses algorithms to coordinate pricing among property managers, effectively fixing prices and limiting competition.
How the Algorithm Works
According to the lawsuit, RealPage’s algorithm collects data from various property managers and suggests rental rates based on this aggregated information. This practice allegedly leads to higher rents as it reduces competitive pricing among landlords.
“The use of this software has led to artificially inflated rents,” said one official from the DOJ.
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Impact on Renters and Market Competition
Consequences for Tenants
The alleged price-fixing has significant implications for renters who may find themselves paying more than they would in a truly competitive market. Higher rents can lead to increased financial strain on tenants, making housing less affordable overall.
A Broader Issue in Housing Markets?
This case highlights broader concerns about how technology can be used to manipulate markets. Similar issues have been observed in other sectors where algorithms are employed for pricing strategies.
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3 Comments
Another case of tech hurting the little guy!
Algorithms are putting a chokehold on housing now.
Another instance of big tech meddling in things they shouldn’t!.