Minnesota Sen. Amy Klobuchar has reintroduced the Prevention Algorithm Conspiracy Act, inspired by the Department of Justice’s Real Page Survey.
Inman on Tour: Increase the volume of real estate success in Nashville! Connect with industry pioneers and top speakers, gain powerful insights, cutting-edge strategies and valuable connections. Increase your business and achieve your most audacious goals – all with Music City Magic. Please register now.
Democrats are targeting the rental industry with a bill that requires companies to disclose the use of algorithms when setting rental prices.
Sen. Amy Klobuchar (D-MN) first introduced the Preventive Algorithm Conspiracy Act in 2024. However, after being transferred to the Senate Judiciary Committee in January, it did not acquire much steam. Klobuchar and eight co-sponsors believe the bill will gain more traction this time.
Senator Amy Klobuchar
“Housing remains the biggest monthly fee for most households, and that includes rent,” Klobuchar told ABC News in an exclusive interview Thursday. “In 2023, there is clear document that this fixed price has increased rents by nearly $4 billion. We know this is happening.
The Act directs the Federal Trade Commission to complete an audit of rental companies that develop or use algorithms to set prices.
In the audit, companies explain the source of the price algorithm, the source of the algorithm used to set prices, and highlight any instance of price discrimination between consumers who want the same or similar You should disclose the data overview and source of data to be used to illustrate the method. Share whether there is a human review process for the product, and the algorithm sets the price.
The company’s chief executive officer, chief economist, chief technology officer, or officer in a similar role is responsible for certifying the report before submitting it to the state’s FTC or attorney general’s office.
If an audit reveals fraud, the company will be subject to a civil penalty of up to $10,000 for each day the violation occurs. Another penalty is equal to the sum of the total of each product or service sold using a pricing algorithm in violation of the law. and other “appropriate relief” that the court deems necessary.
Klobuchar pointed to the Department of Justice lawsuit against rental software maker Realpage as a prime example of why the law is needed.
The DOJ accused Realpage of violating Sherman Law by creating and distributing algorithms that effectively allow landlords to share information and modify prices. Realpage announced that DOJ was “In January” on INMAN.[scapegoating] A competitive technology that has been used responsibly for years. ”
“It’s just a textbook conspiracy,” Klobuchar told ABC. “It’s clearly illegal for these landowners who compete against each other to gather for dinner overnight. Well, this is just a high-tech and sophisticated way, and our laws need to be refined.”
The Minnesota Senator said he now hopes the DOJ will continue its real page investigation under Attorney General Pam Bondy’s direction. Willowbridge Property Company and Cortland Management.
“But there are some good people in the Department of Justice gut who are trying to continue this job,” she said. “So my hope is that there will be continuous anti-trust enforcement.”
Email Marian McPherson
