PORTLAND, Ore. (KOIN) — Oregon and Washington attorneys general have joined other states and federal officials in suing a software firm accused of helping landlords fix rent prices.
The Department of Justice announced on Friday that the agency and eight states — California, Colorado, Connecticut, Minnesota, North Carolina, Tennessee, Oregon and Washington — joined forces for a civil antitrust lawsuit against RealPage.
DOJ reported that property managers send “nonpublic, competitively sensitive information” to the national company that then uses the data to determine rental costs and other terms. Officials argued that this practice minimizes competition among landlords who would otherwise compete for new tenants by offering different prices, concessions, lease terms, etc.
In a statement, Oregon Attorney General Ellen Rosenblum asserted that RealPage’s practices impact the “fair rental market” and violate the 1890 Sherman Act — which aims to encourage competition among business owners.
“At a time when housing affordability is a top concern for Oregonians — and for countless Americans beyond our state’s borders — the issues of fairness and competition could not be more critical,” Rosenblum said.
The complaint names geographic submarkets where the contract between RealPage and landlords have hindered, or are likely to hinder, tenants.
According to Rosenblum, this includes about 54,000 units throughout Central Portland and Aloha-West Beaverton areas. It also includes about 800,000 leases in Washington, according to Attorney General Bob Ferguson.
Court documents list the Redmond and Renton submarkets as those that are the most affected.
“RealPage colluded to fix prices and keep rents rising in order to boost profits,” Ferguson, who is currently running for Washington governor, said in a statement. “The cost of housing is putting a strain on too many working families. My legal team and I will stand up to this collusion and fight for affordable rents for Washingtonians.”
In a statement to AP News, the software firm asserted that the claims listed in the lawsuit are “devoid of merit and will do nothing to make housing more affordable.”
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