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, new section (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, new section (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, new section (1) in setting the amount of rent to be charged to a tenant for the occupancy of a dwelling unit.
(3) 1 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.
This section creates a new prohibition within KRS Chapter 383 (Kentucky's landlord-tenant law) barring landlords from using third-party algorithmic devices to set residential rent amounts. The definition of algorithmic device is broad — covering any algorithm-based tool that processes rent data for the purpose of advising landlords on pricing — but includes a meaningful carve-out for tools designed internally and used exclusively by a landlord or its affiliates. The prohibition extends not only to direct use but also to causing another person to employ such a device on the landlord's behalf.
Enforcement is channeled through Kentucky's existing Consumer Protection Act: a violation is deemed an unfair, false, misleading, or deceptive practice under KRS 367.170, giving the Attorney General enforcement authority without the need for new regulatory infrastructure. The bill applies prospectively to rental agreements executed on or after its effective date.
Section 1 of this Act applies to a landlord's calculation of the amount of rent for a rental agreement executed on or after the effective date of this Act.
Section 2 establishes the prospective application of the prohibition: it applies only to a landlord's calculation of rent for rental agreements executed on or after the effective date of the Act. Existing rental agreements are not affected.