"Whether it's through smoke-filled backroom deals or through an algorithm on your computer screen, colluding to drive up prices is illegal, Bonta said. Families across the country are staring down an affordability crisis. Companies that intentionally fuel this unaffordability by raising prices to line their own pockets can be sure I will use the full force of my office to hold them accountable. California is stronger when we protect tenants and a competitive economy."
"Under the settlement still subject to court approval Greystar must pay $7 million in penalties and fees and comply with the following provisions: Refrain from using anticompetitive algorithms that rely on rivals' data or incorporate anticompetitive features. Refrain from sharing competitively sensitive information with competitors. Accept a court-appointed monitor if using third-party pricing software not certified under the consent decree. Avoid attending RealPage-hosted meetings of competing landlords. Cooperate with the states' monopolization claims against RealPage."
Greystar allegedly used RealPage's revenue management system to coordinate rental prices with competing landlords by sharing and collecting confidential pricing data. RealPage's algorithmic models recommend price increases to subscribers, and landlords reportedly shared sensitive data to generate those recommendations. Landlords discussed pricing strategies, rents and software parameters with each other, enabling nonpublic data to inform recommendations and coordinated rent increases. Greystar manages roughly 333 multifamily rental properties in California using RealPage's pricing tools. Under a settlement subject to court approval, Greystar must pay $7 million in penalties and comply with restrictions on anticompetitive algorithms, bans on sharing sensitive information, court-appointed monitoring requirements, avoidance of RealPage-hosted meetings, and cooperation with states' monopolization claims.
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