Bonta alleges that Greystar used RealPage’s income administration system to coordinate rental prices with competing landlords by sharing and accumulating confidential pricing knowledge.
“Whether or not it’s by way of smoke-filled backroom offers or by way of an algorithm in your laptop display screen, colluding to drive up costs is illegitimate,” Bonta stated. “Households throughout the nation are staring down an affordability disaster. Firms that deliberately gas this unaffordability by elevating costs to line their very own pockets may be certain I’ll use the complete pressure of my workplace to carry them accountable. California is stronger once we shield tenants and a aggressive financial system.”
In accordance with a January 2025 criticism, RealPage’s algorithmic fashions advocate value will increase to subscribers. Greystar and different landlords allegedly shared delicate knowledge to generate pricing suggestions utilizing the software program.
Landlords mentioned pricing methods, rents and software program parameters with one another — understanding that their nonpublic knowledge would inform pricing suggestions for his or her rivals and allow coordinated hire will increase, Bonta stated.
In California, Greystar manages roughly 333 multifamily rental properties utilizing RealPage’s pricing instruments.
Below the settlement — nonetheless topic to court docket approval — Greystar should pay $7 million in penalties and costs and adjust to the next provisions:
- Chorus from utilizing anticompetitive algorithms that depend on rivals’ knowledge or incorporate anticompetitive options.
- Chorus from sharing competitively delicate data with rivals.
- Settle for a court-appointed monitor if utilizing third-party pricing software program not licensed below the consent decree.
- Keep away from attending RealPage-hosted conferences of competing landlords.
- Cooperate with the states’ monopolization claims towards RealPage.
Alongside California, the settlement was reached with attorneys basic from North Carolina, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, Oregon and Tennessee.
Greystar just lately settled a separate class motion lawsuit associated to RealPage software program, with that payout totaling $50 million.
In August, Greystar reached a settement with the Federal Commerce Fee — following a January lawsuit alleging unlawful and extreme charges on tenants.
Separate litigation on that matter is ongoing within the U.S. District Court docket for the Southern District of California.
