Attorney General William Tong, along with the U.S. Department of Justice and eight other state attorneys general, filed a civil antitrust lawsuit against RealPage Inc. for allegedly using its algorithmic pricing software to facilitate price fixing among landlords and monopolize the market for revenue management software. The complaint alleges that RealPage collects competitively sensitive rental data from landlords to train its algorithm, which then recommends prices, harming renters by reducing competition. The lawsuit seeks an injunction to end these practices and restore competition.
The complaint seeks an injunction to prohibit RealPage from continuing its alleged antitrust violations, including the use of its pricing algorithm to coordinate rents and maintain its monopoly in the commercial revenue management software market.
In-house legal teams should review all vendor and customer agreements with property management software providers like RealPage, focusing on clauses governing the sharing of competitively sensitive data (e.g., rental rates, lease terms) and the use of algorithmic pricing recommendations. Specific clauses to examine include data licensing terms, non-disclosure provisions, exclusivity requirements, and any language that could be interpreted as facilitating coordinated pricing among competitors. Agreements may need amendments to explicitly prohibit the use of shared data for price-fixing, ensure landlords retain full autonomy over final pricing decisions, and require transparency on how algorithms use competitor data. Additionally, review termination rights and audit provisions to monitor compliance with antitrust guidelines.
Entity
RealPage Inc.
Also known as: RealPage
Industry
TechnologyOfficial Press Release
https://portal.ct.gov/ag/press-releases/2024-press-releases/attorney-general-tong-joins-lawsuit-against-realpage-inc-for-alleged-antitrust-violations
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https://www.justice.gov/opa/media/1364976/dl?inline
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$500K
Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.
$8.0M
Connecticut announced an $8 million settlement with Mylan over allegations that it used agreements to delay generic EpiPen competitors and took other actions that inflated prices. Mylan also agreed to provide 10,000 free EpiPens; the release states that Mylan denies wrongdoing.
Connecticut Attorney General William Tong joined a coalition of 22 attorneys general in filing an amicus brief challenging DHS’s policy and practice of conducting warrantless civil immigration arrests. The press release describes a court challenge, not a privacy enforcement action or monetary penalty.
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.