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
$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.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.