Comment by consensus1
7 hours ago
They got a wrist slap because the case was flimsy and probably wouldn't stand up in court. This looks nothing like price fixing and everything like price discovery in an undersupplied market, and the people bringing the case are the same government responsible for the actual problem.
The case wasn't even remotely flimsy:
The software literally includes an algorithm that says "this week, you will set the rate for this apartment at $X" based on RP's data.
And, if you want to deviate from that, without being kicked off RP and losing your substantial fee payments, you will follow that rate (and they tell you that they _will_ check), or you can "request an override" from RealPage, that they may allow or deny at their discretion (and RP agents are formally trained that override approvals may not exceed 5% of requests).
> Consistent with their agreement to impose rents generated by RealPage RM Software nearly all the time, Defendants agreed to limit overrides. For example, a RealPage LRO training document states: “Overrides should be few and far between.” Similarly, internal RealPage LRO training documents teach cartel members’ regional managers to beware of “Override Overload” or “rogue” leasing agents who too frequently override the LRO-generated pricing.
> An internal presentation created by Defendant Greystar explicitly acknowledges that RealPage RM Software users should each seek to accept at least 95% of the RealPage-generated prices, emphasizing that “Discipline [o]f using revenue management increases more consistent outcomes.”
> Former Greystar employees have similarly confirmed that negotiating rents other than those set by the RealPage RM Software was unacceptable.
> Even where Participating Landlords do not enable auto-accept, most landlords cannot, on their own, charge rents other than those generated by RealPage’s RM Software— landlords can only “propose an override.” The landlord must then provide a written business justification for why they wish to depart from the RealPage-generated rent.
"Not price fixing", huh?
Just to reiterate that training presentation:
> Discipline [o]f using revenue management increases more consistent outcomes.