SALEM, Ore. (KTVZ) Oregon Attorney General Ellen Rosenblum on Friday joined the U.S. Department of Justice in an antitrust case against RealPage Inc. filed in the U.S. District Court for the Middle District of North Carolina.

Based in Richardson, Texas, RealPage provides property management software services that help rental property owners and managers manage their rental communities. RealPage collects nonpublic, competitively sensitive data from its customers to train its pricing algorithms, which then make pricing recommendations for floor plans and units.

“At a time when housing affordability is a top concern for Oregonians – and for countless Americans outside our state’s borders – the issues of fairness and competition could not be more critical,” said Attorney General Rosenblum. “RealPage’s use of its AI pricing algorithm effectively acts as a hub for property managers and landlords to share confidential, competitively sensitive information and engage in a price-matching scheme to avoid competition. This undermines a fair rental market and is a violation of Oregon and federal antitrust laws (the Sherman Act).”

Pricing algorithms are a new technology and are spreading rapidly to other industries. The lawsuit identifies specific geographic markets where RealPage’s subscriber density is above 30 percent. There are at least two such neighborhoods in Oregon – Aloha/West Beaverton and Central Portland – with a total of about 54,000 residential units.

The lawsuit focuses on RealPage’s actions and seeks to stop RealPage from continuing its anti-competitive practices. The lawsuit names neither property managers nor owners as defendants and does not seek damages on behalf of tenants. In addition to Oregon and the U.S. Department of Justice, California, Colorado, Connecticut, Minnesota, North Carolina, Tennessee and Washington have joined.