NDP asks competition watchdog to probe potential rent-fixing by corporate landlords
The NDP is asking the Competition Bureau to investigate whether Canadian corporate landlords are using the same AI software that sparked an antitrust lawsuit in the United States.
The U.S. Justice Department filed the lawsuit last month against real estate software company RealPage Inc., accusing it of an illegal scheme that allows landlords to co-ordinate hikes in rental prices.
The lawsuit was filed alongside attorneys general in multiple states, including North Carolina and California. It alleges the company is violating antitrust laws through its algorithm, which landlords use to get recommended rental prices for millions of apartments across the country.
NDP MPs Alexandre Boulerice and Brian Masse sent a letter to commissioner Matthew Boswell asking the bureau to launch a probe into whether Canadian landlords have used the same software, YieldStar.
“Canadians deserve answers to how the use of algorithmic pricing tools is contributing to rent increases and how pervasive this practice is across the Canadian rental market,” said the letter, dated Sept. 10.
Rents in Canada have skyrocketed over the last couple of years, adding to affordability concerns in the country.
According to the latest report from Rentals.ca and Urbanation, average asking rents in August rose 3.3 per cent over last year — the slowest annual pace in almost three years — to $2,187.
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