Senator Wyden calls the software a “collusion… to charge above-market rent.”
Senators Ron Wyden of Oregon, Amy Klobuchar of Minnesota, and Peter Welch of Vermont have introduced legislation that would make it illegal for property owners to use computer algorithms to artificially increase rent prices. The legislation comes in response to investigations that showed some landlords used software that coordinated housing supply and rental pricing information to raise price points.
Senator Wyden stated that the companies “brand themselves as providing ‘property management software,’ but in reality, they facilitate collusion by landlords to charge above-market rent.”
“Although it’s my view that these cartels are already violating existing antitrust laws, I want the law to be painfully clear that algorithmic price fixing of rents is a crime,” he continued. “This is exactly how a price-fixing cartel operates, but instead of using code names and secret meetings, the price-fixing is offered as a service.”
As the Lord Leads, Pray with Us…
- For Senators Wyden, Klobuchar, and Welch as they promote the legislation to protect renters from price fixing.
- For wisdom for members of Congress as they evaluate the economy and housing values.
Sources: ProPublica, CNBC
