Minneapolis council passes bill to ban algorithmic rental price fixing
MINNEAPOLIS (FOX 9) - After Twin Cities landlords were among those named in a lawsuit over the use of algorithms to set rent prices, the Minneapolis City Council voted to ban the practice on Thursday.
How landlords used an algorithm to set prices
The backstory:
Back in January, the Department of Justice sued six of the largest landlords in the United States over the use of algorithmic rent price fixing.
The lawsuit claimed the companies shared private data with a third-party company, RealPage, which used an algorithm to set rent prices. RealPage was first sued by the Department of Justice and the landlords were added to the lawsuit in an amended complaint.
Minneapolis landlords named in lawsuit
Local perspective:
The lawsuit named Camden, LivCor, Greystar, Cushman & Wakefield, Willow Bridge and Cortland as defendants. All but Camden operate in Minnesota and the companies make up a "substantial portion" of the rentals available downtown, the Minnesota Attorney General's Office said. Minnesota Attorney General Keith Ellison has joined the DOJ lawsuit as a co-plaintiff.
Council approves price-fixing ordinance
What we know:
At a council meeting on Thursday, Minneapolis council members approved an ordinance to ban the use of algorithms in setting rent prices in the City of Minneapolis.
The ordinance was approved by an 11-2 vote.
What's next:
The ordinance now goes to Mayor Jacob Frey's office for approval.
Minneapolis council members are set to discuss the new ordinance at a news conference at 1:30 p.m. on Thursday. You'll be able to watch that news conference in the player above.
Federal rental price-fixing legislation
Federal action:
At the federal level, Senator Amy Klobuchar and a group of Democratic lawmakers introduced a similar bill in February to prevent "algorithmic collusion."
The legislation would also make it illegal for landlords to use these methods to set rent prices at the federal level.