Canada’s industry minister is calling on the Competition Bureau to probe whether Canadian landlords are using AI software in alleged rent-fixing schemes.

Francois-Philippe Champagne’s call comes a day after the CBC reported on the use of a software called YieldStar by some corporate landlords.

In a letter to Competition Bureau Commissioner Matthew Boswell, Champagne urged him to use tools within the Competition Act to look into the “use of algorithmic rising in the rental market.”

“I want to draw your attention to recent revelations of possible price fixing in the rental market by landlords who use technologies like YieldStar,” Champagne wrote. “These technologies set prices that can be higher than naturally competitive prices.”

Champagne’s call is not the first urging the bureau to take action, with the NDP making a similar request in September following an antitrust lawsuit filed in the U.S.

In August, the U.S. Justice Department filed a suit against real estate company RealPage Inc., which owns YieldStar, accusing it of an illegal scheme that allows landlords to coordinate to hike rental prices.

Click to play video: 'BIV: Rising cost of Metro Vancouver rent'

The suit alleged the company was violating antitrust laws through its algorithm that landlords use to get recommended rental prices for millions of apartments across the country.

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Reports by The Canadian Press and CBC cited statements from the company denying the allegations made by American law enforcement.

In his letter, Champagne said the federal government supported the use of new technologies but would take action to protect Canadians from uses that “seek to take advantage of them and disempower them.”

The Competition Bureau, in an email to Global News, confirmed they had received Champagne’s letter “regarding alleged price-fixing and collusion by corporate landlords using YieldStar.”

A spokesperson said due to confidentiality, they could not confirm if the Bureau was or will be investigating the matter.

“The Bureau must conduct a thorough and complete examination of the facts regarding any issue before reaching any conclusion as to whether the Competition Act has been contravened,” John Power wrote. “If we find evidence of activities that could raise concerns under the law, we will take action.”

The latest rental report from Rentals.ca and Urbanation found average asking rents rose by 2.1 per cent year-over-year, the lowest rate since October 2021, though they noted smaller markets were seeing upward pressure on rents which could add to affordability concerns in small cities.

— with files from The Canadian Press