Proposed class-action lawsuit alleges rental price-fixing by companies using YieldStar software

A proposed class-action lawsuit alleges multiple landlords and property managers “conspired” to control rents across Canada using an algorithmic software called YieldStar .

This follows a civil antitrust lawsuit filed by the U.S. Department of Justice in August against RealPage Inc. , the Texas -based company that created the software.

Several companies named in the proposed suit dispute their use of the controversial software.

RealPage said it leverages real-time lease-transaction data in order to respond to changes in supply and demand.

The proposed class action is seeking financial compensation for tenants who have resided in any of the properties owned or operated by the 14 companies named, going back to 2009 .

The 15 companies named in the proposed suit are: RealPage Inc., Quadreal Property Group , Westcorp Property Management Inc. , FirstService Residential Management Canada Inc. , Associated Property Management (2001) Ltd., GWL Realty Advisors Residential Inc. , M&R Property Management .

A spokesperson from the bureau confirmed it has “commenced a preliminary investigation into algorithmic pricing in the Canadian real estate rental market” The bureau says protecting competition in the real estate industry is a priority for the bureau.

“Such an investigation would enable the bureau to recommend essential protections for renters and ensure fair market competition”.