The NDP is calling on the Competition Bureau to investigate whether Canadian corporate landlords are using the same AI software that has sparked antitrust lawsuits in the United States.
Last month, the Department of Justice filed a lawsuit against real estate software company RealPage, alleging that the company ran an illegal scheme that allowed landlords to coordinate and raise rents.
The lawsuit, filed alongside attorneys general from states including North Carolina and California, alleges that the company violates antitrust laws through algorithms used by landlords to arrive at recommended rental prices for millions of apartments across the country.
NDP MPs Alexandre Bouleris and Brian Masse wrote to Commissioner Matthew Boswell asking him to open an investigation into whether Canadian landlords were using the same software, YieldStar.
“Canadians have a right to an explanation of how the use of algorithmic pricing tools is affecting rent increases and the extent to which this practice permeates Canada’s rental market overall,” the Sept. 10 letter said.
A spokesman confirmed the FBI received the letter but said he could not confirm whether the agency was investigating or planning to investigate the matter.
“The authorities must thoroughly and completely investigate the facts surrounding any matter before concluding whether there has been a violation of competition law,” Emmanuel Morin said in an email.
“If we find evidence of activity that raises legal concerns, we will take action.”
Rent prices in Canada have skyrocketed in recent years, raising concerns about home buying in the country.
According to the latest report from Rentals.ca and Urbanation, the average asking rent in August rose 3.3 per cent from last year to $2,187 – the lowest annual increase in nearly three years.
This report by The Canadian Press was first published Sept. 20, 2024.
With files from The Associated Press.
