Item 16 - Ordinance Prohibiting Anti-Competitive Automated Rent Price-Fixing

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Ordinance Prohibiting Anti-Competitive Automated Rent Price-Fixing February 17, 2026 Page 3 5 5 8 3 California Attorney General Rob Bonta, joined the action. In January 2025, the DOJ updated the lawsuit to include two additional Attorneys General and to identify landlords as defendants. The case is still underway, though several defendants have already settled with the Department of Justice and participating state attorneys general. Greystar, one of the major defendants, agreed to pay $7 million to the DOJ and another $7 million to the state attorneys general, and to discontinue its use of RealPage’s algorithmic pricing tool. However, RealPage and several other landlords continue to litigate the matter, with RealPage seeking dismissal of the claims and the remaining defendants also contesting the lawsuit. Proposed Santa Ana Ordinance Prohibiting Anti-Competitive Automated Rent Price-Fixing The proposed ordinance would prohibit the sale, licensing, provision, and use of certain algorithmic rent-setting tools within the City. A citywide ban on providing or using an “Algorithmic Device” that uses nonpublic competitor data to recommend rents and occupancy levels for residential rental property in the City. The ordinance is limited in scope to residential rental property and does not apply to pricing software that relies solely on publicly available data, aggregate historical data, or tools used to comply with affordable housing program requirements. The proposed ordinance establishes a local prohibition on algorithmic devices that facilitate coordinated rent-setting practices; the ordinance also establishes a tenant- focused enforcement mechanism. A tenant affected by a violation of this ordinance may seek injunctive relief, damages, or civil penalties up to $1,000 per violation, plus attorney’s fees. Each residential unit and each month of continued use of algorithmic devices constitutes a separate violation. These enforcement provisions are intended to provide tenants with a direct and accessible remedy, independent of state or federal enforcement actions. The proposed ordinance is designed to operate alongside existing and proposed state antitrust laws while providing greater protections to tenants by: - defining a more limited scope (residential rental property within Santa Ana city limits), - providing direct enforcement abilities (tenants may seek relief via civil action), and - easing the burden of proof (tenants need to show that the landlord used an algorithmic device and the device relied on nonpublic competitor data). Existing state law does not expressly preempt local regulation of algorithmic rent- setting practices. AB 325 clarifies the application of antitrust principles of algorithmic pricing under the Cartwright Act, but does not establish an exclusive regulatory framework. If SB 384 is enacted, the bill would supplement rather than displace existing antitrust law.