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Canada’s Competition Bureau has launched an investigation into the potential influence of artificial intelligence (AI) on rental price tracking and setting across the nation.
“After renters began conducting rent strikes and advocating for their rights, I initiated conversations with renters nationwide,” stated Bonita Zarrillo, Member of Parliament for Port Moody-Coquitlam, in an interview with Global News. “We learned about these algorithm-based software tools, such as YieldStar, which appeared to be collecting data and contributing to inflated rental prices.”
Last summer, the U.S. Justice Department filed a lawsuit against RealPage Inc., the parent company of YieldStar, accusing it of engaging in unlawful practices that allowed landlords to collude on rent increases.
The lawsuit claimed that the algorithm provided landlords with rental price recommendations for millions of apartments throughout the United States, allegedly violating antitrust laws.
According to Zarrillo, similar companies are functioning within Canada, raising concerns about their impact on the local housing market.
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Zarrillo proposed a motion for Parliament to investigate this matter last fall, but it failed to pass the first reading.
The Competition Bureau, in an official statement, emphasized that the details of its investigation will remain confidential to protect the integrity of the process. “The Bureau is committed to conducting a comprehensive review of all relevant facts before determining if there has been a violation of the Competition Act,” the statement read.
“There is evidence that personal data is being gathered,” Zarrillo noted. “This includes demographic information, income levels, and rental prices in specific buildings and neighborhoods. The ability to aggregate this data raises concerns about fairness and business practices, as it allows for the selection of the most desirable tenants at inflated prices. This is why an investigation is crucial, as it may reveal unjust practices contributing to rising rents, which I suspect is occurring.”
Source
globalnews.ca