3 weeks ago
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(NewsNation) — The nation's largest landlord has reached a settlement with the Justice Department implicit claims it utilized a rent-setting algorithm improperly and colluded with competitors to boost profits.
Greystar, which manages astir 950,000 rental units crossed the country, agreed to a projected colony earlier this period that volition barroom the institution from utilizing "any anticompetitive algorithm" that generates pricing recommendations utilizing its competitors' delicate data, the section said successful a statement.
The statement comes aft national prosecutors accused Greystar and different ample landlords of utilizing RealPage's algorithmic pricing bundle to stock delicate rental data, enabling them to coordinate rent increases.
The DOJ said Greystar and different landlords besides discussed competitively delicate topics — including pricing strategies, rents and selected parameters for RealPage’s bundle — straight with each other.
Those activities, national authorities argued, were anticompetitive, hurting Americans who were already facing steep lodging costs.
"American greatness has ever depended connected free-market competition, and obscurity is contention much important than successful making lodging affordable again," Attorney General Pam Bondi said successful the colony announcement.
The deal, which inactive has to beryllium approved by a judge, volition besides artifact Greystar from sharing competitively delicate accusation with competitors moving forward.
Last year, a White House report found that renters whose landlords utilized RealPage's algorithm paid an further $70 a period connected mean — and successful cities similar Atlanta, Dallas and Denver, the premium topped $130.
Greystar did not admit wrongdoing arsenic portion of the colony and said successful a statement that it "firmly believes that its usage of RealPage's gross absorption bundle complies with each applicable laws."
The institution said it entered into the colony to marque wide the government's mentation of the instrumentality since the manufacture continues to look "unclear regulatory guidance astir the usage of gross absorption tools."
