NS-3090 - Prohibiting Anti-Competitive Automated Rent Price-Fixing

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G. In response to the use of algorithmic devices to set rental rates and occupancy levels, in August 2024, the United States Department of Justice (DOJ) filed a lawsuit against RealPage, Inc. Fight Attorneys General, including California Attorney General Rob Bonta, joined the DOJ's lawsuit. The DOJ amended its lawsuit in January 2025 to add two Attorneys General and name landlords and defendants. This lawsuit was settled in November 2025 and per the DOJ, "the proposed settlement would help restore free market competition in rental markets for millions of American renters." Per the settlement, RealPage did not admit any wrongdoing or liability, RealPage must not use their competitors' non-public information, and an independent monitor will ensure compliance for seven (7) years. City renters cannot hope that RealPage does not violate the settlement nor that RealPage will be caught by the independent monitor. H. RealPage filed a federal lawsuit against the City of Berkeley in April 2025 challenging their ordinance that bans landlords from using algorithmic revenue management software for setting rental rates. While the litigation is pending, and as RealPage will be monitored City renters cannot wait for this lawsuit to run its course. The Council wishes to provide immediate relief to City renters by prohibiting the sale, licensing, and use of algorithmic devices that use or incorporate nonpublic competitor data to advise a landlord on, or recommend to a landlord, rental rates or occupancy levels that may be achieved for residential real property in the City. Section 2. The recitals and statements of fact set forth in the preamble to this ordinance are true and correct, constitute a substantive part of the ordinance, and are incorporated herein by reference. Section 3. Article XXIV (Prohibition of Anti-Competitive Automated Rent Price- Fixing) is added to Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code to read as follows: Section 8-3700 -- Purpose and Intent The purpose and intent of this Article is to protect the residents of Santa Ana from artificially inflated rental rates and unfair rent increases by prohibiting the sale, licensing, and use of Algorithmic Devices. This Article also provides Tenants with remedies for violations of this Article. Section 8-3701 — Definitions (a) For purposes of this Article, the words and phrases shall be defined as set forth herein, unless the context clearly indicates a different meaning is intended. (b) Words and phrases used in this Article, which are not specifically defined, shall be construed according to their context and the customary usage of the language. (c) Words and phrases defined: Ordinance No. NS-3090 Page 2 of 5