Power Struggles and Decision-Making: A Deep Dive into Current Political Landscape
Colorado Governor Jared Polis has vetoed a bill aimed at banning rent-setting algorithms, allowing the continued use of software that investigators claim promotes price-fixing and subsequently costs Denver tenants an additional $1,600 in annual rent, according to a 2022 ProPublica investigation. The bill, House Bill 1004, had bipartisan support and targeted RealPage, the software developer of a prominent rent-setting algorithm, in response to federal and state lawsuits alleging collusion.
In his veto letter, Polis expressed "grave concerns about prohibiting companies using algorithmic pricing software derived from multiple data sources from doing business in Colorado." He suggested that the use of rent-setting algorithms may already be illegal and that he prefers to wait until ongoing court cases "run their course."
RealPage, which has denied allegations of price-fixing or illegal activities, applauded Polis' veto. The company's tool allows landlords to set recommended rent prices based on various data, such as rents and occupancy limits, as reported by ProPublica.
The Biden White House found that Denver-area renters who lived in apartments using RealPage's software paid more than $1,600 more than their peers annually. This was the second-highest price disparity among 20 major metro areas included in the study.
Sen. Julie Gonzales, one of the sponsors of HB 1004, expressed disappointment in Polis' decision, stating that he had "an opportunity to save Coloradans money, but instead aligned himself with tech companies currently facing litigation from the federal government and multiple states."
The Justice Department and Colorado Attorney General Phil Weiser are suing RealPage and several large landlords for allegedly establishing a cartel-like system to drive up rent prices by sharing confidential information. Polis expressed support for strengthening Colorado's antitrust laws but not in a product-specific manner.
HB 1004's Democratic sponsors and supporters blasted Polis' veto, with Rep. Steven Woodrow, a Denver Democrat, stating, "It's unfortunate that someone who claims to care so deeply about saving people money has chosen the interests of large corporate landlords over those of hard-working Coloradans."
This veto is not unexpected, as Polis' office has signaled skepticism toward the bill throughout the session. The bill was a priority for the House Democratic caucus and had been highlighted as an example of their efforts to address Colorado's affordability crisis. Polis mentioned that he may potentially support a more limited bill next year, perhaps marking the third attempt in as many years to ban the algorithms.
Additionally, Polis has vetoed bills aimed at more tightly regulating social media companies and adding new safety requirements for Uber and Lyft drivers this year. The vetoed bill that required licensed drivers to ride in and monitor autonomous commercial vehicles effectively prohibits autonomous commercial vehicle testing and operations in Colorado, according to Polis. The three other bills vetoed on Thursday address health services in state prisons and surprise bills from ambulance services not covered by passengers' health insurance.
- Colorado Governor Jared Polis, who has vetoed a bill aimed at banning rent-setting algorithms, has raised concerns about prohibiting companies using algorithmic pricing software.
- Polis believes that the use of rent-setting algorithms may already be illegal and prefers to wait until ongoing court cases "run their course."
- RealPage, the software developer of a prominent rent-setting algorithm, had been targeted in response to federal and state lawsuits alleging collusion.
- The Biden White House found that Denver-area renters who lived in apartments using RealPage's software paid an additional $1,600 more annually compared to their peers.
- Senate sponsor of HB 1004, Julie Gonzales, expressed disappointment in Polis' decision, stating that he had an opportunity to save Coloradans money but instead aligned himself with tech companies facing litigation.
- The Justice Department and Colorado Attorney General Phil Weiser are suing RealPage and several large landlords for alleged collusion and establishing a cartel-like system to drive up rent prices.
- Polis has vetoed bills aimed at more tightly regulating social media companies, adding new safety requirements for Uber and Lyft drivers, and prohibiting autonomous commercial vehicle testing and operations in Colorado.
- Additionally, Polis has vetoed bills addressing health services in state prisons and surprise bills from ambulance services not covered by passengers' health insurance.
