Oregon Secures Landmark Settlement Forcing Greystar to Halt Algorithm Driven Rent Pricing
A nine-state coalition, including Oregon, proposed a $7 million settlement to resolve claims against Greystar Management Services LLC, the largest landlord in the United States, following Greystar’s August non-monetary settlement with the U.S. Department of Justice.
Oregon Monetary Settlement With Greystar Landlord Over Price Fixing
Greystar, which manages nearly 950,000 rental units nationwide, and other large landlords relied on RealPage’s pricing algorithm to coordinate rent increases rather than competing independently, then shared competitively sensitive data, according to the allegations in the lawsuit.
The landlords reduced competitive pressure and raised rents above what they would otherwise have been by discussing pricing strategies, rent levels, and software parameters with one another.
Oregon Attorney General Dan Rayfield said, “We’re in the middle of a housing crisis, and families are already stretched to their limits.”
The settlement is part of the coalition’s ongoing enforcement efforts targeting price-fixing involving rental housing prices across the country. In addition to the monetary payment to the states, the agreement, if approved by the court, will require that Greystar:
- Refrain from using any anticompetitive algorithm
- Refrain from sharing competitively sensitive information with competitors.
- Accept a court-appointed monitor if it uses an uncertified third-party pricing algorithm
- Refrain from attending or participating in RealPage-hosted meetings of competing landlords.
- Cooperate with the coalition’s claims against RealPage.
AG Rayfield said, “This settlement holds the largest U.S. landlord accountable. It’s a win for Oregonians, our pocketbooks, and the rule of law.”