The state of New Jersey is taking legal action against landlords and companies that engage in what the state’s Attorney General alleges is illegal rent fixing.

The state of New Jersey is suing 10 of the state’s largest landlords and the property management software company RealPage Inc., reports Dana DiFilippo in New Jersey Monitor.
The lawsuit stems from allegations that the software allows landlords to artificially inflate rent prices and manipulate the market. The algorithmic software lets landlords align prices to avoid competition and force renters to pay higher prices overall. According to the state’s Attorney General, this violates the federal Sherman Act, the New Jersey Antitrust Act, and the New Jersey Consumer Fraud Act. The AG accused the companies of ““unconscionable business practices that deceive and mislead consumers into believing the rental prices that they charge are market rate.”
The lawsuit alleges that the companies share confidential information to feed an “anticompetitive algorithm” that raises prices, amounting to a rent-setting cartel. “The U.S. Department of Justice filed a similar antitrust lawsuit against RealPage last year, and several private class-action lawsuits also have targeted the company’s software and practices.” Other cities and states are similarly raising the alarm and considering legislation to regulate rent-setting algorithms.
FULL STORY: New Jersey sues landlords, software company over rent-fixing claims

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