New bill would give Philly the green light to sue landlords for price-fixing rental rates

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Philadelphia City Council is weighing legislation that would formally bar landlords from “price-fixing” rental rates, an illegal practice housing advocates say hurts low-income renters by undermining competition and fairness in the marketplace. 

The measure is designed to stop corporate landlords from using revenue management software like RealPage to coordinate monthly rents. 

“Price-fixing through an algorithm is still price-fixing. It’s still illegal and we ain’t gonna allow it in the city of Philadelphia,” At-Large Councilmember Nicolas O’Rourke said during a news conference Thursday. 

If passed, the city could file suit on behalf of tenants and impose stiff fines on landlords who violate the law. Renters could also sue landlords directly. 

Under the measure, violators could be forced to pay $2,000 per violation. Each “prohibited action” would be counted as a separate violation and the fine would be imposed for every day it “occurs or continues.” 

A private plaintiff would be entitled to three times the value of the actual damages, or $2,000 per violation. 

The bill comes as rental rates in the city remain historically high amid an affordability crisis. And as housing activists continue to call on corporate landlords to provide better living conditions and lower rents for people with low-incomes.

They say part of the problem is baked into the software program landlords use to set prices.

“RealPage is robbing us and they’re ok with it,” said Lori Peterson, a member of Renters United Philadelphia.

RealPage did not immediately respond to a request for comment.

O’Rourke’s bill is inspired by legislation passed last month in San Francisco.

Last month, the U.S. Department of Justice filed suit against RealPage in partnership with the attorneys general of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee and Washington.

The suit alleges the software company enables landlords to “align their rents” to the detriment of consumers.

“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” U.S. Attorney General Merrick Garland said in a statement.