California Cities’ Algorithmic Pricing Laws Show Teeth as Class Actions Mount, Corporate Counsel

Partner Minna Lo Naranjo spoke with Corporate Counsel about a growing wave of class actions alleging that landlords violated municipal restrictions on the use of algorithmic pricing tools to set rents.

Minna noted that claims brought under the local ordinances present a different set of issues than related antitrust claims.

“Instead of having to plead a Sherman Act conspiracy, a plaintiff can simply plead that a landlord used algorithmic pricing,” Minna said, adding that landlords may be able to defend themselves by showing that the algorithm did not use nonpublic information.

As more cities adopt similar restrictions, Minna advised landlords to carefully review their use of algorithmic pricing tools for compliance with applicable ordinances where they operate.

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