Philly lawmaker wants to stop landlords from coordinating rental rates
Philadelphia City Council is currently considering new legislation aimed at preventing landlords from engaging in “price-fixing” of rental rates, which is an illegal practice that housing advocates argue disproportionately impacts low-income renters by disrupting market competitiveness and fairness.
The proposed legislation seeks to halt the usage of revenue management software, such as RealPage, by corporate landlords for the coordination of monthly rents. The practice of manipulating rental rates through algorithms is seen as another form of price-fixing, which is prohibited under antitrust laws.
“Price-fixing through an algorithm is still price-fixing. It’s still illegal and we ain’t gonna allow it in the city of Philadelphia,” stated At-Large Councilmember Nicolas O’Rourke during a recent news conference.
If the legislation is enacted, it would empower the city to file lawsuits on behalf of tenants and impose significant fines on landlords found in violation of the law. Moreover, it would grant renters the ability to directly sue landlords involved in such practices.
Violators of the proposed measure could face fines of up to $2,000 per infraction. Each prohibited action would be considered a separate violation, with fines accruing for each day the violation occurs or continues.
In cases brought by private plaintiffs, they would be entitled to claim three times the value of the actual damages incurred, or $2,000 per violation, whichever is greater.
