Philadelphia City Council is considering a new law that would prevent landlords from setting rental prices together, a practice known as “price-fixing.” This is considered illegal because it harms competition and fairness, especially affecting those with lower incomes.
What the Legislation Targets
The main goal of the proposed law is to stop big landlords from using special computer programs, like one called RealPage, to decide on rent prices together. This coordination among landlords can lead to unfairly high rents.
Statements from Council Members
Councilmember Nicolas O’Rourke strongly spoke against this practice. At a recent news conference, he emphasized, “Price-fixing through an algorithm is still price-fixing. It’s still illegal and we ain’t gonna allow it in the city of Philadelphia.” His firm stance shows the city’s commitment to tackling this issue head-on.
Legal Consequences for Violating the Law in Philadelphia
If this law passes, the city could take legal action against landlords who don’t comply. Landlords could face heavy fines—$2,000 for each day they break the law. Additionally, renters themselves could sue their landlords directly, potentially receiving up to three times the actual damages they suffered.
Broader Impacts and Ongoing Issues
This legislation comes at a time when rents in Philadelphia are extremely high, contributing to an affordability crisis. Housing activists continue to demand that large landlords offer better living conditions and more affordable rents. The push for this law also aligns with actions in other states and recent legal challenges against RealPage by the U.S. Department of Justice, emphasizing its national significance.
