AI Rent-Setting: Federal Lawsuit Exposes Potential Price-Fixing Scheme

AI-Powered Rent-Setting Sparks Federal Lawsuit: NBC New York's I-Team Uncovers Potential Price-Fixing Scheme New York, NY – A new investigation by NBC New York's I-Team has uncovered a potential price-fixing scheme involving the use of artificial intelligence (AI) algorithms in setting rental prices. The investigation centers on RealPage, a technology company that provides revenue management software to landlords. The federal government and several state attorneys general have filed lawsuits against RealPage, alleging that its algorithm allows landlords to fix prices and share sensitive information, potentially violating antitrust laws. The I-Team's investigation revealed numerous instances of rental prices that did not end in round numbers, a pattern that raised suspicion. "Is your rent being set by an AI algorithm?" the report asked, highlighting the unusual pricing practices. Hidden camera footage captured rental agents admitting to sharing pricing information with other landlords, further supporting the allegations of price-fixing. "We share that," one rental agent stated during the undercover operation. This admission, along with the non-round pricing patterns, provides strong evidence to support the claims made in the lawsuits. RealPage denies the allegations, claiming its algorithm is not anti-competitive and sometimes even recommends lowering prices. However, the lawsuits and the I-Team's investigation raise serious concerns about the potential impact of AI on fair housing practices and the need for greater transparency in the rental market. The outcome of the lawsuits could have significant implications for the future of rent-setting and the use of AI in the real estate industry.