Silicon Valley properties part of Greystar $7M rent increase settlement - San Jose Spotlight

"The settlement is part of an ongoing lawsuit filed last year by the U.S. Department of Justice and a coalition of nine state attorneys general against RealPage, a software company that uses algorithmic models to recommend price increases to subscribers. "We are pleased this matter is resolved and remain focused on serving our residents and clients," Greystar spokesperson Garrett Derderian said in a statement to the Mountain View Voice."

"According to Bonta's news release, Greystar artificially raised rents by gathering and sharing competitively sensitive data using RealPage's algorithms. "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. Greystar and other property management companies discussed "competitively sensitive topics," including pricing strategies and rents, directly with each other, according to the news release, which described the practices as anticompetitive and illegal."

""RealPage knew what competing landlords were charging and could increase profits for landlords by using that information to recommend landlords set or raise their prices uniformly, thereby eliminating competition, and leaving renters no choice but to pay artificially high prices," the release said. In the settlement, Greystar agreed to pay $7 million in penalties and fees to the state and said it would cooperate with the state's prosecution against RealPage."

Greystar, the largest U.S. landlord with major Silicon Valley holdings, agreed to a $7 million settlement in an antitrust case alleging collusion to raise rents. The settlement relates to a broader lawsuit by the U.S. Department of Justice and nine state attorneys general against RealPage, which provides algorithmic pricing recommendations. Greystar allegedly gathered and shared competitively sensitive data and used RealPage algorithms to align rents with competitors. Authorities characterized coordinated price increases via backroom deals or algorithms as illegal. Under the settlement, Greystar will pay penalties, cooperate with prosecution of RealPage, and stop using software that aligns prices using competitively sensitive information.

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