Greystar, the nation’s largest multifamily owner and property manager, has reached an agreement with the Department of Justice (DOJ) and private class-action plaintiffs regarding claims around Greystar’s use of RealPage’s revenue management software.
As alleged in the complaint, Greystar and other landlords shared competitively sensitive data to generate rental pricing recommendations using RealPage algorithms, which included anticompetitive rules that aligned competitors’ pricing. In addition, the complaint claimed Greystar and other landlords discussed topics such as pricing strategies, rents, and selected parameters for RealPage’s software directly with one another.
“The Trump-Vance administration is committed to promoting competition to help working-class Americans pay for life’s necessities—including rent,” said assistant attorney general Abigail Slater from the Justice Department’s Antitrust Division. “Whether in a smoke-filled room or through an algorithm, competitors cannot share competitive sensitive information or align prices to the detriment of American consumers.”
If approved by the U.S. District Court for the Middle District of North Carolina, the proposed consent decree would require Greystar to:
• Refrain from using any anticompetitive algorithm that generates pricing recommendations using competitors’ data;
• Refrain from sharing sensitive information with competitors;
• Accept a court-appointed monitor if its uses a third-party pricing algorithm that is not certified pursuant to the consent decree terms;
• Refrain from attending or participating in RealPage-hosted meetings of competing property managers; and
• Cooperate with the federal monopolization claims against RealPage.
Greystar issued a statement, saying it firmly believes its use of RealPage’s revenue management software complies with all applicable laws.
“That is why Greystar has vigorously defended itself in these matters and will continue to defend itself against any claims brought by regulators. Today’s settlements do not change that belief, and the settlements contain no admission of wrongdoing,” noted the firm. “Greystar remains committed to being at the forefront of innovation in service of its clients and residents, all within the bounds of the law.”
In addition, Greystar said the settlements provide clarity for the industry at large and acknowledge the shifting regulatory landscape.
“The industry continues to face litigation and unclear regulatory guidance around the use of revenue management tools. We entered into these settlements to make clear the government’s interpretation of the law and to ensure we continue to do things the right way,” the firm said. “The settlements with the DOJ and the private plaintiffs also represent a significant step in putting these litigations behind us and moving the industry forward.”
