Seattle Considers Ban on Rent-Setting Algorithms Amid Collusion Allegations

The proposed law, Council Bill 121000, seeks to ban tech companies from offering services that use automated pricing algorithms and would bar landlords from utilizing such tools. Violators could face civil penalties under the measure, according to GeekWire.

This legislative push follows a lawsuit filed in April by Washington Attorney General Nick Brown against RealPage, a Texas-based real estate technology company, and nine landlords operating in the Seattle area. The complaint accuses the defendants of coordinating rent increases through RealPage’s software platform, which aggregates market data to recommend pricing.

Per GeekWire, the software allegedly allows landlords to set rents with knowledge of what their competitors are charging, resulting in less competition and higher costs for tenants. The suit claims this practice violates antitrust laws and harms renters in already expensive markets.

A 2022 investigation by ProPublica found that in Seattle’s Belltown neighborhood, 70% of apartments were managed by just 10 property managers — all of whom reportedly used RealPage’s technology. This level of market concentration, combined with algorithmic pricing tools, has sparked concerns about fairness and manipulation in the rental market.

An earlier attempt to enact similar restrictions at the state level failed during the most recent legislative session. During those debates, RealPage executive Mike Semko testified in defense of the company’s platform, stating the technology “is simply market research and analysis with a suggested price,” as reported by GeekWire.

The Seattle City Council is expected to continue deliberations on the bill in the coming weeks. Supporters say the measure is necessary to restore transparency and competitive fairness to the housing market, while critics warn it could limit useful tools for landlords without addressing the root causes of rising rents.

Source: GeekWire