A new bill in Congress aims to change the game for renters in major cities. Introduced by Sen. Amy Klobuchar, it targets companies that use algorithms to determine rents, citing concerns of collusion and price-fixing.
According to Klobuchar, these companies collect data from landlords and use it to set prices, often driving up costs for consumers. The bill wouldn’t prevent landlords from using algorithms, but would stop companies from working together to inflate rents.
The Justice Department previously sued RealPage, a leading provider of algorithmic pricing, alleging collusion with landlords that resulted in higher rents nationwide. A report by the Biden administration found that algorithms like RealPage’s added over $90 per month to average rents in several cities, and a total of $3.8 billion to rentals nationwide.
The legislation, called the “Preventing Algorithmic Collusion Act,” requires rental companies to disclose if they’re using algorithms to set rents, and directs the Federal Trade Commission to study its impact on competition.
Klobuchar hopes for bipartisan support from Republicans and admits that seeing tech CEOs at Trump’s inauguration made her pause. However, she remains optimistic about antitrust enforcement, citing the Department of Justice’s previous actions against Google and Meta.
In the meantime, Klobuchar urges renters to do their own research, asking questions like “Are you involved with RealPage or one of these companies that sets rents?” as they rent apartments.
Source: https://abcnews.go.com/Politics/rents-high-new-bill-congress-aims-change/story?id=118498819