Could AI be Used for Illegal Price Fixing?
03/07/2025
In a blog posted by Todd Janzen, at Janzen Ag Law (www.aglaw.us) Janzen shared the potential for Artificial Intelligence (AI) to be used in a way that would violate the Sherman Antitrust Act of 1890. Though there are many applications of AI for improving market competitiveness, there is also great potential to use it to collaborate on pricing all sorts of products and services.
He cites, “A recent case by the Justice Department and ten states against RealPage, Inc., an online platform offering landlord “revenue management” software, has claimed that such software and its use by landlords has resulted in illegal price fixing harming tenants.” The concern is that by using the software, nonpublic information from competing landlords is combined to make recommendations for pricing rental units.
RealPage, in its own words states that it, “helps curb [landlords’] instincts to respond to down-market conditions by either dramatically lowering price or by holding price when they are losing velocity and/or occupancy. . . . Our tool [] ensures that [landlords] are driving every possible opportunity to increase price even in the most downward trending or unexpected conditions.”
Janzen further shares that, “Courts are wrestling with whether such rent sharing constitutes illegal price fixing because AI data sharing tools lack the traditional “agreement” between competitors. Instead, the users of the platform set prices according to the information learned through using the tool.”
The outcome of these rent-sharing cases can relate directly to their use in the marketing of ag goods and commodities, as well as land rental rates.
As AI is used in more and more applications, we will need to remain very diligent in how we, and our clients, make ethical decisions on the use of AI in our day-to-day decision-making strategies.
To read Todd Janzen’s full blog, go to https://www.aglaw.us/janzenaglaw/2025/1/31/ais-price-fixing-complications
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This article is the opinion and perspective of the author and may or may not be consistent with those of anyone else. Mention of specific people or items in the article is not an endorsement of the individual, the company or the organization from which it originates.
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Don Tyler
Tyler & Associates
ASAC Board Member
In a blog posted by Todd Janzen, at Janzen Ag Law (www.aglaw.us) Janzen shared the potential for Artificial Intelligence (AI) to be used in a way that would violate the Sherman Antitrust Act of 1890. Though there are many applications of AI for improving market competitiveness, there is also great potential to use it to collaborate on pricing all sorts of products and services.
He cites, “A recent case by the Justice Department and ten states against RealPage, Inc., an online platform offering landlord “revenue management” software, has claimed that such software and its use by landlords has resulted in illegal price fixing harming tenants.” The concern is that by using the software, nonpublic information from competing landlords is combined to make recommendations for pricing rental units.
RealPage, in its own words states that it, “helps curb [landlords’] instincts to respond to down-market conditions by either dramatically lowering price or by holding price when they are losing velocity and/or occupancy. . . . Our tool [] ensures that [landlords] are driving every possible opportunity to increase price even in the most downward trending or unexpected conditions.”
Janzen further shares that, “Courts are wrestling with whether such rent sharing constitutes illegal price fixing because AI data sharing tools lack the traditional “agreement” between competitors. Instead, the users of the platform set prices according to the information learned through using the tool.”
The outcome of these rent-sharing cases can relate directly to their use in the marketing of ag goods and commodities, as well as land rental rates.
As AI is used in more and more applications, we will need to remain very diligent in how we, and our clients, make ethical decisions on the use of AI in our day-to-day decision-making strategies.
To read Todd Janzen’s full blog, go to https://www.aglaw.us/janzenaglaw/2025/1/31/ais-price-fixing-complications
= = = = = = = = =
This article is the opinion and perspective of the author and may or may not be consistent with those of anyone else. Mention of specific people or items in the article is not an endorsement of the individual, the company or the organization from which it originates.
= = = = = = = = =
Don Tyler
Tyler & Associates
ASAC Board Member
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