WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(1)(a)–(b) The general assembly finds that the use of algorithmic devicesAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a): (a) Has been the subject of lawsuits that allege such products pose a heightened risk of anticompetitive conduct, price fixing, and collusion, all of which allegedly result in higher rentsRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) for residential tenants; and (b) Allegedly poses the risk that landlords will outsource pricing decisions, which the general assembly determines should always be made by the landlord.
(2) Therefore, the general assembly declares that, with certain exceptions, the use of an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a) by a landlord to set the amount of a residential tenant's rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) is prohibited.
This section sets out the legislative findings motivating the bill. The General Assembly finds that algorithmic rent-pricing devices have been the subject of lawsuits alleging heightened risk of anticompetitive conduct, price fixing, and collusion resulting in higher residential rents. It further finds that landlords risk outsourcing pricing decisions that the legislature believes should always be made by the landlord directly. The section declares the bill's intent to prohibit, with certain exceptions, landlord use of algorithmic devices to set residential rent amounts.
(1) 1 IN SETTING THE AMOUNT OF RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) TO BE CHARGED TO A TENANT FOR THE OCCUPANCY OF A RESIDENTIAL PREMISES, INCLUDING DETERMINING ANY CHANGE IN THE AMOUNT OF RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) TO BE CHARGED FOR THE RENEWED OCCUPANCY OF A RESIDENTIAL PREMISES, A LANDLORD SHALL NOT EMPLOY, USE, OR RELY UPON, OR CAUSE ANOTHER PERSON TO EMPLOY, USE, OR RELY UPON, AN ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a) THAT USES, INCORPORATES, OR WAS TRAINED WITH NONPUBLIC COMPETITOR DATANonpublic competitor data"Nonpublic competitor data" means information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data are attributable to a specific competitor or anonymized, and that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market.C.R.S. § 38-12-703(3)(b).
(2) 1 A VIOLATION OF SUBSECTION (1) OF THIS SECTION IS AN UNFAIR OR DECEPTIVE TRADE PRACTICE, AS DESCRIBED IN SECTION 6-1-105 (1)(eeee), AND A PERSON WHO COMMITS A VIOLATION IS SUBJECT TO ALL PENALTIES AND REMEDIES DESCRIBED IN THE "COLORADO CONSUMER PROTECTION ACT", ARTICLE 1 OF TITLE 6.
(3)(a) "ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a)" MEANS A DEVICE THAT USES ONE OR MORE ALGORITHMS TO PERFORM CALCULATIONS OF DATA, INCLUDING DATA CONCERNING LOCAL OR STATEWIDE RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) AMOUNTS BEING CHARGED TO TENANTS BY LANDLORDS, FOR THE PURPOSE OF ADVISING A LANDLORD CONCERNING THE AMOUNT OF RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) THAT THE LANDLORD MAY CONSIDER CHARGING A TENANT. "ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a)": (I) INCLUDES A PRODUCT THAT INCORPORATES AN ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a); AND (II) DOES NOT INCLUDE: (A) ANY REPORT PUBLISHED PERIODICALLY, BUT NO MORE FREQUENTLY THAN MONTHLY, BY A TRADE ASSOCIATION THAT RECEIVES RENTER DATA AND PUBLISHES IT IN AN AGGREGATED AND ANONYMOUS MANNER; OR (B) A PRODUCT USED FOR THE PURPOSE OF ESTABLISHING RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) OR INCOME LIMITS IN ACCORDANCE WITH THE AFFORDABLE HOUSING PROGRAM GUIDELINES OF A LOCAL GOVERNMENT, THE STATE, THE FEDERAL GOVERNMENT, OR OTHER POLITICAL SUBDIVISION.
(3)(b) "NONPUBLIC COMPETITOR DATANonpublic competitor data"Nonpublic competitor data" means information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data are attributable to a specific competitor or anonymized, and that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market.C.R.S. § 38-12-703(3)(b)" MEANS INFORMATION THAT IS NOT WIDELY AVAILABLE OR EASILY ACCESSIBLE TO THE PUBLIC, INCLUDING INFORMATION ABOUT ACTUAL RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) PRICES, OCCUPANCY RATES, LEASE START AND END DATES, AND SIMILAR DATA, REGARDLESS OF WHETHER THE DATA ARE ATTRIBUTABLE TO A SPECIFIC COMPETITOR OR ANONYMIZED, AND THAT IS DERIVED FROM OR OTHERWISE PROVIDED BY ANOTHER PERSON THAT COMPETES IN THE SAME MARKET AS A PERSON, OR A RELATED MARKET.
(3)(c) "RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c)" MEANS THE TOTAL AMOUNT OF RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c), INCLUDING CONCESSIONS AND FEES, THAT A RESIDENTIAL TENANT IS REQUIRED TO PAY PURSUANT TO A RENTAL AGREEMENT.
This is the bill's core operative section. It prohibits landlords from employing, using, relying upon, or causing another person to employ, use, or rely upon an algorithmic device that uses, incorporates, or was trained with nonpublic competitor data when setting or adjusting the amount of rent for residential premises, including lease renewals. The prohibition reaches both direct use and indirect use through third parties.
Subsection (2) classifies a violation as an unfair or deceptive trade practice under the Colorado Consumer Protection Act, importing the full CCPA enforcement and remedial framework. Subsection (3) provides three definitions — algorithmic device, nonpublic competitor data, and rent — with notable carve-outs for aggregated monthly trade-association reports and affordable-housing compliance tools.
(1)(eeee) 2 VIOLATES OR ASSISTS ANOTHER PERSON IN VIOLATING SECTION 38-12-703 CONCERNING THE USE OF AN ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (I) Includes a product that incorporates an algorithmic device; and (II) Does not include: (A) Any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) A product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.C.R.S. § 38-12-703(3)(a) TO DETERMINE THE AMOUNT OF RENTRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) TO CHARGE A TENANT FOR THE OCCUPANCY OF A RESIDENTIAL PREMISES.
This section adds a new enumerated category to Colorado's unfair or deceptive trade practices statute, making a violation of § 38-12-703 — or assisting another person in violating that section — a deceptive trade practice. This is the enforcement bridge that imports the full CCPA remedial toolkit (AG enforcement, private suits, damages, injunctive relief) for algorithmic rent-setting violations.
(1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
(2) This act applies to a landlord's calculation of the amount of rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.C.R.S. § 38-12-703(3)(c) that the landlord charges for the occupancy of a residential premises pursuant to any rental agreement that is executed on or after the applicable effective date of this act.
This section provides that the act takes effect 90 days after final adjournment of the General Assembly, subject to a referendum petition. The prohibition applies to rental agreements executed on or after the effective date — it does not apply retroactively to existing leases.