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NDP asks competition watchdog to probe potential rent-fixing by corporate landlords

OTTAWA — The NDP is asking the Competition Bureau to investigate whether Canadian corporate landlords are using the same AI software that sparked an antitrust lawsuit in the United States. The U.S.
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NDP MP Alexandre Boulerice rises during question period in the House of Commons in Ottawa on Thursday, June 6, 2024. The NDP is asking the Competition Bureau to investigate whether Canadian landlords are using the same AI software that sparked an anti-trust lawsuit in the United States.THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — The NDP is asking the Competition Bureau to investigate whether Canadian corporate landlords are using the same AI software that sparked an antitrust lawsuit in the United States.

The U.S. Justice Department filed the lawsuit last month against real estate software company RealPage Inc., accusing it of an illegal scheme that allows landlords to co-ordinate to hike rental prices.

The lawsuit, filed alongside attorneys general in states including North Carolina and California, alleges the company is violating antitrust laws through its algorithm that landlords use to get recommended rental prices for millions of apartments across the country.

NDP MPs Alexandre Boulerice and Brian Masse sent a letter to commissioner Matthew Boswell asking the bureau to launch a probe into whether Canadian landlords have used the same software, YieldStar.

"Canadians deserve answers to how the use of algorithmic pricing tools is contributing to rent increases and how pervasive this practice is across the Canadian rental market," the letter dated Sept. 10 said.

A spokesman confirmed the bureau had received the letter but said he's unable to confirm whether it is or will be investigating the matter.

"The bureau must conduct a thorough and complete examination of the facts regarding any issue before reaching any conclusion as to whether the Competition Act has been contravened," said Emmanuel Morin in an email.

"If we find evidence of activities that could raise concerns under the law, the bureau will take action. "

Rents in Canada have skyrocketed over the last couple of years, adding to affordability concerns in the country.

According to the latest report from Rentals.ca and Urbanation, average asking rents in August rose 3.3 per cent from last year — the slowest annual pace in almost three years — to $2,187.

This report by The Canadian Press was first published Sept. 20, 2024.

— With files from The Associated Press.

Nojoud Al Mallees, The Canadian Press