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Senate Bill Aims to Ban Anti-Competitive Rent-Setting Software in Washington

By  |  January 23, 2025
Software

Legislation targeting the use of algorithmic rent-setting software was introduced in the Washington State Senate on Wednesday. Senate Bill 5469, sponsored by Sen. Jesse Salomon (D-Shoreline), seeks to prohibit landlords from employing software that collects and analyzes rental data from multiple sources to set prices, a practice that some argue facilitates unlawful price fixing.

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    According to the proposed bill, it would be illegal for landlords in Washington to use this type of technology, which leverages data from two or more landlords along with public and private databases to recommend rent prices. The legislation comes amid growing scrutiny of the role such software plays in driving up rental costs.

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    “It’s outrageous and illegal to collude to raise the prices of rent,” Salomon said in a statement. “While most landlords are not doing this, it should be plainly illegal to use software that facilitates unlawful price fixing. This bill will help ensure rents are set at fair levels.”

    The proposed legislation coincides with a broader legal challenge against RealPage, the largest provider of such rent-setting software. The United States Department of Justice, along with 10 states, including Washington, has filed a lawsuit against the company. According to a statement, the lawsuit alleges that RealPage’s rent-pricing suggestions — which are based on data collected from multiple landlords and databases — violate federal antitrust laws by enabling price fixing.

    Sen. Salomon’s bill represents a local response to the larger debate over algorithmic pricing in the housing market. Supporters argue that the legislation would protect tenants by ensuring fairer rental practices and reducing the potential for artificially inflated prices. Critics, however, may push back on whether banning the software alone will address systemic issues in the housing market.

    Source: Senate Democrats