Philly Rent Algorithm Ban Faces First Test, Raising Risk

Keys on a ring with a small house-shaped keychain next to a crumpled €20 note and papers on a desk.

Tenant Yiyao Liu filed a class-action lawsuit on July 6th in the Philadelphia County Court of Common Pleas.

The complaint alleges Willow Bridge Property Company and RealPage violated the city’s rent price-fixing statute by using banned rent-setting software at managed properties in Center City and University City.

Class action tests Philadelphia rent price-fixing ban

The complaint claims Willow Bridge used RealPage to set, recommend, or influence rents at Vue 32 in University City and Rittenhouse Row in Center City.

Liu seeks a jury trial, treble damages or statutory damages, attorneys’ fees, and an injunction restricting use of unauthorized software in the city.

According to reporting by WHYY, the case is believed to be the first filed since the antitrust law took effect in February 2025.

Prior coverage of Philadelphia tenant lawsuit over alleged price-fixing software provides background on the ordinance and the claims.

What the ordinance prohibits and immediate compliance risk

Philadelphia Code § 9-813 makes it unlawful to engage in price coordination for residential rentals, including selling or providing services that collect nonpublic competitor data to recommend rents, fees, terms, or occupancy levels.

The statute also makes it illegal to use, subscribe to, contract, or pay for such services.

A Multifamily Dive article states the law took effect on February 11th, 2025 and bars both the sale and use of algorithmic price coordination tools.

Additional background on the class action alleging violations of the rent price-fixing statute details RealPage products cited in the complaint, including AIRevenue Management, YieldStar, and Lease Rent Options.

Operational shifts in University City and Center City leasing

Because the ordinance targets tools that rely on competitors’ nonpublic data, disabling these features can change how managers time rent updates for new leases and renewals in core submarkets.

Without cross-landlord feeds, pricing may lean more on internal comps and on-the-ground surveys in West Philadelphia and Center City.

Documentation of independent pricing inputs and audit trails becomes a practical control as owners and operators calibrate occupancy targets and renewal offers.

Recent analysis of compliance risk for managers using rent algorithms outlines how pricing and leasing operations could shift under the ordinance.

Enforcement landscape and what to watch next

A judge recently approved a DOJ settlement with RealPage requiring the software to stop using competitors’ nonpublic, competitively sensitive information in runtime operation, with no admission of wrongdoing or financial penalties.

The DOJ also filed a proposed settlement with Willow Bridge the same day Liu’s suit was filed.

RealPage said it does not comment on pending litigation, and Willow Bridge did not respond to a request for comment.

The first case under the city’s ban will signal how courts assess alleged coordination at managed properties.

Case mechanics and damages under Philadelphia law

Liu seeks class certification, a jury trial, treble damages or $2,000 per violation, attorneys’ fees, and injunctive relief.

The ordinance, passed in October 2024 and effective February 11th, 2025, made Philadelphia the second U.S. municipality after San Francisco to prohibit algorithmic rent price coordination, including use, subscription, or payment for such services.

New Age Realty Group, Inc. is a full-service real estate and property management firm based in Philadelphia.

With decades of experience in residential leasing and investment strategy, we work closely with clients to navigate the city’s evolving market.