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Landlords Face Rent Collusion Lawsuit Settlement
24 Dec
Summary
- DOJ sued landlords for using software to illegally share rent pricing data.
- LivCor, a Blackstone firm, settled claims of colluding to raise rental prices.
- Settlement aims to prevent landlords from using competitor data for pricing.
The U.S. Justice Department announced a settlement with LivCor, a property management firm associated with Blackstone, resolving allegations of conspiring to illegally raise rental prices. This action stems from a lawsuit initiated earlier this year, accusing several large landlords of employing software from RealPage to exchange confidential rental pricing details.
LivCor has agreed to cease setting rental rates based on non-public information from competing landlords or utilizing third-party software for such data sharing. Assistant Attorney General Abigail Slater emphasized that this agreement serves as a warning to landlords nationwide about competition laws protecting renters from data collusion and price fixing.
This resolution follows similar settlements with RealPage, Cortland Management, and Greystar Management Services. The Justice Department's actions underscore a commitment to addressing algorithmic collusion, a practice where competitors share sensitive data that influences pricing recommendations generated by software platforms.
