NDP’s Zarrillo to table motion to probe AI use in hiking and price-fixing rent « Canada’s NDP
OTTAWA—On Tuesday, NDP MP Bonita Zarrillo (Port Moody—Coquitlam) will table a motion at the Standing Committee on Human Resources that calls on giant corporate landlords to testify in Ottawa about whether artificial intelligence (AI) driven price fixing is behind rent increases hurting Canadians.
With a housing crisis raging all over the country, Zarrillo’s motion would force corporate landlord CEOs to answer to Canadians about whether they’re using the same AI software to manipulate rent prices on which the United States is currently taking legal action.
“Everyone should be able to find a place they can afford, that’s safe and fits their family’s needs,” said Zarrillo. “But Canadians are working hard, and still finding it tough to keep up with rising rents. The Liberals promised relief, but failed to stand up to wealthy developers who buy up affordable homes to jack up rent until they’re absolutely unaffordable.
“The Conservatives’ close ties to real estate investors and developers make it clear who they work for—not working families but wealthy corporate landlord getting rich off mistreating their tenants. The allegations of rent fixing are fuel on the housing crisis fire. Canadians deserve answers.”
Recently, Dream Unlimited, one of Canada’s largest corporate landlords, admitted to using AI software that the American government alleges is used by landlords to collude and coordinate rent increases. This software is commonly used in Canada by 13 multi-billion-dollar corporations.
“The Liberals have been letting Canadians down, and they’re too weak to stand up to corporate greed,” said Zarrillo. “The Conservatives’ track record is much worse – they have prioritized protecting corporate profits over Canadians’ access to affordable housing every step of the way. With this motion, I’m asking them to join us in protecting renters and families, for once.
“New Democrats are focused on protecting Canadians from rent gouging. That’s why we want to hold these corporate landlords accountable and stop practices that are hurting Canadians.”
Last month, NDP critic for Housing Alexandre Boulerice and NDP critic for Industry Brian Masse also wrote to the Competition Bureau to launch a probe into potential rent-fixing by corporate landlords.
Here is the text of MP Zarrillo`s motion:
Given that,
- while families are increasingly making hard choices about paying rent or keeping food on the table, corporate landlords have been contributing to rising rents in Canada by buying up previously affordable apartments and raising rents to increase profits for investors;
- one of Canada’s largest corporate landlords, Dream Unlimited, has admitted to using AI software that the U.S. government has alleged allows landlords to illegally coordinate rent increases, and that the software is commonly used by as many as 13 companies in Canada with more than $5 billion in revenue;
- today the biggest real estate investment firms collectively own close to 20 percent of the purpose-built rental units in Canada, nearly 400,000 rental units, up from zero in the 1990s;
- the Public Sector Pension Investment Board, also known as PSP Investments, has significant investments in multi-family housing in partnership with Starlight Investments, including 71, 75, and 79 Thorncliffe Park Drive in Toronto where tenants are fighting above guideline rent increases that will force people out of their homes;
That, pursuant to Standing Order 108(2), the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities undertake a study of the role of financialized landlords on rising costs in Canada’s rental market, including how the use of algorithmic pricing tools is contributing to rent increases and how pervasive this practice is across the Canadian rental market; that the Committee invite President of Dream Unlimited Michael J. Cooper, CEO of Starlight Investments Daniel Drimmer, CEO of Boardwalk REIT Sam Kolias, CEO of Mainstreet Equity Bob Dhillon, CEO of Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) Mark Kenney, President and CEO of PSP Investments Deborah K. Orida, and other experts and stakeholders; that the Committee hold a minimum of four meetings and report its findings and recommendations to the House; and that the government table a comprehensive response to the report.