Mercer Times

The New Jersey Attorney General, Matthew J. Platkin, along with the Division of Consumer Affairs, has filed a lawsuit against RealPage, Inc., a software company, and 10 large landlords in New Jersey for their alleged participation in a scheme to raise rents, thereby violating antitrust and consumer protection laws.

The lawsuit accuses RealPage and the landlords of using algorithmic pricing software to set rents across multifamily housing properties in the state and for exchanging sensitive, non-public information to keep rent prices high. The federal Sherman Act, New Jersey Antitrust Act, and the New Jersey Consumer Fraud Act are claimed to have been violated by the defendants.

Attorney General Platkin stated, "The defendants in this case unlawfully lined their pockets at the expense of New Jersey renters who struggled to pay the increasingly unlivable price levels imposed by this cartel." He emphasized holding them accountable for actions that exacerbated the state's housing crisis.

New Jersey faces one of the nation's highest rent costs and lacks over 200,000 affordable rental homes. This is particularly problematic in North Jersey, where many low- and middle-income renters are burdened by high rents.

Jeremy Hollander, Acting Director of the Division of Consumer Affairs, remarked, "This lawsuit is about putting a stop to corporate greed at its worst." He noted that the defendants conspired to leverage pricing software to drive rents beyond competitive market levels, negatively impacting New Jersey residents.

The complaint targets RealPage and landlords, including companies like Morgan Properties Management Company LLC, AvalonBay Communities, Inc., and others, alleging collaboration in the rent-setting scheme. It also alludes to unnamed co-conspirators and suggests additional defendants might be identified as the investigation continues.

At the core of the alleged scheme is RealPage's Revenue Management software, which used algorithms to set rent prices, restricting competition and fostering collective rent hikes. According to the complaint, landlords adhered strictly to RealPage's pricing recommendations, sometimes misleading renters about the origins of rent increases.

The lawsuit aims to stop anticompetitive and fraudulent practices by seeking an injunction, appointing a corporate monitor, and obtaining damages, among other remedies.

Deputy Attorneys General Blair Gerold and Leslie Prentice, under Antitrust Section Chief David Reichenberg and others, represent the Attorney General in this matter.