Canada’s Industry Minister is asking the Competition Bureau to investigate whether Canadian landlords are using artificial intelligence software in alleged rent-fixing schemes.
Francois-Philippe Champagne’s appeal comes a day after the CBC reported on the use of software called YieldStar by some corporate owners.
In a letter to Competition Bureau Commissioner Matthew Boswell, Champagne urged him to use the tools of the Competition Act to investigate the “use of algorithmic growth in the rental market.”
“I want to bring your attention to recent revelations of possible price fixing in the rental market by landlords using technologies like YieldStar,” Champagne wrote. “These technologies set prices that may be higher than naturally competitive prices.”
Champagne’s call is not the first to urge the bureau to take action: the NDP made a similar request in September following an antitrust lawsuit filed in the US.
In August, the U.S. Department of Justice filed a lawsuit against real estate company RealPage Inc., which owns YieldStar, accusing it of an illegal scheme that allows landlords to coordinate to raise rental prices.
The lawsuit alleged that the company was violating antitrust laws through its algorithm that landlords use to obtain recommended rental prices for millions of apartments across the country.
Receive the latest national news
For news affecting Canada and around the world, sign up to receive breaking news alerts delivered directly to you as it happens.
Reports from The Canadian Press and CBC cited statements from the company denying the allegations made by US authorities.
In his letter, Champagne said the federal government supported the use of new technologies but would take steps to protect Canadians from uses that “seek to take advantage of them and disempower them.”
The Competition Bureau, in an email to Global News, confirmed that they had received Champagne’s letter “regarding alleged price fixing and collusion by corporate owners using YieldStar.”
A spokesperson said that due to confidentiality, they could not confirm whether the Office was or will be investigating the matter.
“The Bureau must conduct a thorough and complete examination of the facts relating to any matter before reaching a conclusion as to whether the Competition Act has been contravened,” John Power wrote. “If we find evidence of activities that could raise concerns under the law, we will take action.”
The latest rental report from Rentals.ca and Urbanation found that average asking rents increased 2.1 per cent year-over-year, the lowest rate since October 2021, although they noted that smaller markets were experiencing upward pressure on rents, which could raise concerns about affordability in small towns.
– with files from The Canadian Press
© 2024 Global News, a division of Corus Entertainment Inc.
