Makers of Rent-Setting Software Sue California City Over Ban
The ongoing debate over algorithm-based rent-setting continues as RealPage, a Texas-based real estate software company, has filed a lawsuit against Berkeley, California. The city’s recent ordinance implemented a ban on the use of certain algorithms by landlords, claiming they inflate rents and exacerbate the housing crisis. RealPage argues that this ban violates their free speech rights and stems from misconceptions about their software.
The lawsuit emerges amid larger federal scrutiny of algorithmic pricing in the rental market, with the U.S. Department of Justice already pursuing anti-trust actions against the company. RealPage contends that the ordinance lacks due process, as they were not given a chance to present their side before the council’s decision.
Key Points
- RealPage has sued Berkeley over its ban on algorithmic rent-setting, claiming free speech violations.
- The ordinance aims to combat rising rents attributed to algorithm usage by landlords.
- The company is facing ongoing federal hearings regarding anti-competitive practices linked to its software.
- RealPage asserts that the lack of housing supply is the root cause of high rents, not their algorithms.
- This legal action may set a precedent for similar regulations in other cities with similar ordinances.
Why should I read this?
This article highlights the crucial intersection of technology and housing policy, showcasing the tension between regulatory efforts to control housing costs and the rights of businesses using algorithmic tools. It underlines the relevance of ongoing discussions surrounding tech innovations and their impact on everyday life, particularly in urban settings.
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