Bellingham group seeks to ban algorithmic rental price-fixing. Here’s what to know
A Bellingham advocacy group is collecting signatures for a ballot initiative that would prohibit landlords from using software that artificially inflates rent prices. Initiative 26-01, proposed by Community First Whatcom, follows similar bans in cities including Seattle, Portland and San Francisco.
FULL STORY: Proposed Bellingham initiative would prohibit algorithmic rental price-fixing
Here are key takeaways:
• Community First Whatcom needs a minimum of 3,500 signatures to qualify Initiative 26-01 for the Nov. 3 ballot.
• Algorithmic price-fixing occurs when landlords use software that recommends rent increases based on internal data from clients, including current prices and occupancy rates. These services have been found to artificially inflate rent across entire market areas.
• A 2024 White House Council of Economic Advisors report found that algorithmic price-fixing added an average of $70 per month to rent for units managed by users of these programs. In 2023 alone, the algorithms are estimated to have cost American renters more than $3.8 billion.
• The Department of Justice sued RealPage for antitrust violations in 2024. The lawsuit was settled late last year, requiring RealPage to stop using real-time data for price recommendations but not requiring damages or an admission of wrongdoing.
• The Washington Attorney General’s Office filed a lawsuit against RealPage and nine local landlords in April of last year.
• State Sen. Sharon Shewmake of Bellingham endorsed the initiative, saying, “Algorithmic price-fixing is terrible for consumers. It’s unfair. It’s anti-competitive, and it’s bad economic policy.”
The summary points above were compiled with the help of AI tools and edited by journalists. The full story in the link at the top was reported, written and edited entirely by journalists.
