The new measure will impose penalties on Philadelphia landlords who set rent prices

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The Philadelphia City Council is considering legislation that would formally prohibit landlords from “price fixing” rent rates, an illegal practice that housing advocates say harms low-income tenants by undermining competition and fairness in the marketplace.

The measure aims to prevent corporate property owners from using revenue management software such as RealPage to coordinate monthly rents.

“Algorithmic pricing is still pricing. It is still illegal and we will not allow it in Philadelphia,” General Council member Nicolas O’Rourke said during a press conference Thursday.

If the resolution is passed, the city could file a lawsuit on behalf of tenants and impose severe penalties on landlords who break the law. Tenants can also sue landlords directly.

Under this measure, violators could be forced to pay $2,000 for each violation. Each “prohibited activity” would be counted as a separate violation, and a penalty would be imposed for each day on which it “occurred or continued.”

A private plaintiff would be entitled to three times the actual damages, or $2,000, for each violation.