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) As used in this section, "algorithmic deviceAlgorithmic device"Algorithmic device": (a) Means a device that uses one (1) 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; (b) Includes a product that incorporates an algorithmic device; and (c) Does not include a product designed internally and used exclusively by a landlord or a landlord's affiliates.KRS Chapter 383, Section 1(1)": (a) Means a device that uses one (1) 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; (b) Includes a product that incorporates an algorithmic deviceAlgorithmic device"Algorithmic device": (a) Means a device that uses one (1) 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; (b) Includes a product that incorporates an algorithmic device; and (c) Does not include a product designed internally and used exclusively by a landlord or a landlord's affiliates.KRS Chapter 383, Section 1(1); and (c) Does not include a product designed internally and used exclusively by a landlord or a landlord's affiliates.
(2) 1 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": (a) Means a device that uses one (1) 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; (b) Includes a product that incorporates an algorithmic device; and (c) Does not include a product designed internally and used exclusively by a landlord or a landlord's affiliates.KRS Chapter 383, Section 1(1) in setting the amount of rent to be charged to a tenant for the occupancy of a dwelling unit.
(3)(a)–(b) 2 A violation of this section shall be deemed an unfair, false, misleading, or deceptive practice in the conduct of trade or commerce in violation of KRS 367.170 and an illegal restraint of trade or commerce in violation of KRS 367.175. (b) All of the remedies, powers, and duties provided to the Attorney General by the Consumer Protection Act, KRS 367.110 to 367.300, appertaining to acts declared unlawful by KRS 367.170 and 367.175 shall apply with equal force and effect to acts or practices declared unlawful under this section.
This section creates a new provision within KRS Chapter 383 (Kentucky's landlord-tenant law) that categorically prohibits landlords from using third-party algorithmic rent-pricing tools to set residential rents. The definition of algorithmic device is broad — covering any algorithm-based tool that ingests rent data from multiple landlords and outputs pricing recommendations — but expressly excludes internally developed tools used solely by a landlord or its affiliates. The prohibition extends to indirect use: a landlord may not cause another person to use such a device on the landlord's behalf.
Enforcement is channeled through Kentucky's existing Consumer Protection Act and antitrust statutes. A violation is deemed both an unfair or deceptive trade practice under KRS 367.170 and an illegal restraint of trade under KRS 367.175, giving the Attorney General full enforcement authority. The operative provision applies only to rental agreements executed on or after the Act's effective date.
Section 1 of this Act shall apply to a landlord's calculation of the amount of rent for a rental agreement executed on or after the effective date of this Act.
This section provides that the prohibition on algorithmic rent-setting devices applies only to rental agreements executed on or after the Act's effective date. Existing rental agreements are grandfathered.