Massachusetts Attorney General Andrea Joy Campbell announced that a coalition of nine states has reached a $7 million settlement with Greystar Management Services, LLC. The agreement resolves allegations that Greystar, the largest landlord in the United States, engaged in anticompetitive practices by using algorithmic pricing software to coordinate rental prices, which allegedly harmed renters. Massachusetts is set to receive $621,988 from the settlement.
“While Massachusetts residents grapple with a persistently high cost of living driven by housing costs, my office is proud to have secured this settlement against those who seek to undermine a fair and competitive rental market,” said Attorney General Andrea Joy Campbell. “My office will continue to hold bad actors in the housing market accountable.”
The settlement follows an antitrust lawsuit filed by the multistate coalition and the U.S. Department of Justice against RealPage, Inc., a revenue management software company, and six major landlords. The complaint alleges that these companies participated in an unlawful scheme to reduce competition in rental housing markets across the country. According to the complaint, these landlords operate more than 1.3 million units in 43 states and Washington D.C.
Greystar manages nearly 950,000 rental units nationwide, including thousands in Massachusetts. The coalition claims that Greystar and other defendants used RealPage’s software to share sensitive data and generate pricing recommendations through algorithms. They also allegedly discussed pricing strategies and rents directly with each other.
If approved by the court, the proposed settlement would require Greystar to stop using any anticompetitive algorithm that relies on competitors’ sensitive data or certain features deemed anticompetitive. Greystar would also be prohibited from sharing sensitive information with competitors and from attending meetings hosted by RealPage involving competing landlords. Additionally, if Greystar uses an uncertified third-party pricing algorithm, it must accept oversight from a court-appointed monitor and cooperate with ongoing claims against RealPage.
The attorneys general joining Campbell in this settlement represent California, Colorado, Connecticut, Illinois, Minnesota, North Carolina, Oregon, and Tennessee.
In Massachusetts, Assistant Attorney General Katherine Krems and Deputy Division Chief Jennifer Greaney of Campbell’s Antitrust Division are handling this matter.
