PROVIDENCE – The city on Wednesday filed an enforcement action against Audubon Capital Partners LLC, alleging the firm used banned algorithmic software to coordinate rent pricing.
City spokesperson Joshua Estrella said the complaint marks the first enforcement action under the law, adopted last year to ban algorithmic rent pricing.
The city alleges Audubon Capital Partners used such software in a manner that resulted in unlawful price coordination, contributing to artificially elevated rent levels in the Providence housing market.
“When corporations unlawfully utilize these algorithms to artificially raise rent prices, we will hold them accountable,” Mayor Brett P. Smiley said in a statement. “Across the country we have seen the use of algorithmic software create unfair housing markets that prioritize profit, reduce competition and drive up rent prices.”
The complaint cites a violation of the city code that prohibits algorithmic rent coordination. Violations carry a civil penalty of $500 per day.
Councilman John Goncalves, who supported the ordinance, said the city acted after receiving constituent concerns.
“We banned algorithmic rental price fixing in Providence because housing is not a game for corporations to rig,” Goncalves said. “Using software to manipulate rents and squeeze residents is unacceptable.”
Audubon Capital Partners has been ordered to appear before Providence Municipal Court on June 1.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.