New York AG needs RealPage’s lawsuit tossed

Dive Temporary:

• Final week, New York Legal professional Normal Letitia James requested a federal court docket to toss a lawsuit filed by actual property software program supplier RealPage that seeks to halt statewide measures proscribing algorithmic lease pricing.
• Landlords in New York and throughout the nation have relied upon pricing algorithms that may allow them to cost a lot greater rents than a aggressive market would yield, James stated within the movement to dismiss filed Jan. 9 within the U.S. District Court docket, Southern District of New York. 
• In November 2025, RealPage requested for a preliminary injunction on New York’s prohibition on the usage of pricing algorithms to set residential rents, which took impact in December 2025. It’s the primary state to impose such a ban.

Dive Perception:

On Oct. 16, 2025, New York Gov. Kathy Hochul signed into legislation S.7882, which amends the state’s current antitrust legislation, the Donnelly Act, to ban the usage of pricing algorithms by residential landlords to set lease costs. It comes within the wake of comparable citywide prohibitions in Jersey Metropolis, New Jersey; Windfall, Rhode Island; Philadelphia; Minneapolis; San Francisco; and Seattle.

In response, Richardson, Texas-based RealPage argued in its grievance filed Nov. 26 that the legislation represents a “sweeping and unconstitutional ban on lawful speech particularly meant to outlaw software program developed and bought by corporations like Plaintiff RealPage, Inc. that present data and recommendation to homeowners and managers of rental properties.”

In her movement to dismiss the go well with, James responded, “Though [RealPage] is on no account the one know-how firm that landlords have turned to, Plaintiff’s unabashed zeal in selling its software program to stifle competitors within the rental housing market is especially egregious.”

RealPage declined to touch upon James’ request to dismiss the go well with. The lawyer basic’s workplace didn’t reply to Multifamily Dive as of publication time.

Particularly, the statute prohibits the operation or licensure of any knowledge analytics service or software program that entails the pooling of information offered by two or extra completely different property homeowners or managers, in response to a weblog publish from Palo Alto-headquartered legislation agency Wilson Sonsini Goodrich & Rosati, which makes a speciality of know-how.

Courts have typically thought of the gathering of historic competitively delicate data much less prone to affect competitors than present knowledge, however New York’s legislation makes no such distinction, per Wilson Sonsini.

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