Company Sues Berkeley Over Algorithm Rent-Setting Ban

A rental software company is suing the City of Berkeley over an ordinance barring the use of algorithms to determine rent prices.

The plaintiff is Texas-based RealPage. The company makes an AI program that uses collected landlord data to determine how high a landlord can set their rent. These types of programs have been blamed for contributing to high rental prices. 

Berkeley’s ordinance “prohibits speech — speech in the form of advice and recommendations from RealPage to its customers,” the company’s attorney Stephen Weissman said.

The ordinance is scheduled to take effect this month. San Francisco was the first city to ban rent-setting software last year. San Diego and San Jose are exploring similar laws.