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Friday, September 20, 2024

Justice Department files lawsuit against RealPage over alleged algorithmic pricing scheme

Attorneys & Judges
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Matthew M. Graves, attorney for the District of Columbia | Wikipedia

Acting Associate Attorney General Benjamin C. Mizer delivered remarks on August 23, 2024, regarding the Justice Department’s lawsuit against RealPage for an alleged algorithmic pricing scheme. The remarks were made in acknowledgment of the Antitrust Division's efforts.

"I would like to reiterate the Attorney General’s and the Deputy Attorney General’s thanks to the leadership and staff of the Antitrust Division," Mizer stated, commending their professionalism and dedication during the investigation.

The civil action against RealPage is part of the Department's initiative to combat anticompetitive practices that impact American consumers. The complaint claims that RealPage's software collects and shares sensitive information from landlords about rental prices, projected vacancies, and lease terms. This data is then used to provide daily pricing recommendations to landlords, allowing them to align rental prices and limiting tenants' ability to negotiate or seek discounts.

"This type of conduct is egregious," Mizer remarked, noting that similar practices have been identified in various industries. He highlighted ongoing litigation against a company accused of facilitating information sharing among meat processors, leading to higher prices for products like chicken, turkey, and pork. Additionally, an information exchange was recently shut down for allegedly helping processors suppress wages and benefits in poultry processing plants.

In criminal antitrust contexts, Mizer mentioned efforts to eliminate price-fixing among pharmaceutical companies. Last year saw resolutions with two drug companies involved in fixing prices for essential medicines. These resolutions required donations worth $50 million in drugs, $255 million in criminal penalties, and divestiture of certain drug product lines.

Mizer also referenced unfair pricing practices within the transportation industry. Civil Division actions have included prosecuting individuals for rolling back odometer readings and falsifying vehicle titles to hike used car prices. Companies have also been sued for forcing buyers into purchasing unwanted or unnecessary insurance.

"The Department remains committed to fighting these and other unlawful pricing practices regardless of how and where they might arise," Mizer concluded before handing over the podium to Assistant Attorney General Jonathan Kanter.

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