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.
This chapter shall be known as the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act.
Establishes the short title of the chapter as the "Preventing Algorithmic Rent Fixing in the Rental Housing Market Act." This section is purely nominal and creates no compliance obligations.
As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings: "CoordinateCoordinate"Coordinate", with respect to a service provider, the: (i) collecting of historical or contemporaneous prices, price changes, supply levels, occupancy rates or lease or rental contract termination and renewal dates of residential dwelling units; (ii) analyzing or processing of the information described in clause (i), including with the use of a system, software or process that uses computation; and (iii) recommending of rental prices, lease terms, occupancy levels, or other commercial term to a real estate lessor.G.L. c. 40Z, § 2", with respect to a service providerService provider"Service provider", any person that performs a coordination function for any real estate lessor or rentor.G.L. c. 40Z, § 2, the: (i) collecting of historical or contemporaneous prices, price changes, supply levels, occupancy rates or lease or rental contract termination and renewal dates of residential dwelling unitsResidential dwelling unit"Residential dwelling unit", any house, apartment, accessory unit or other unit intended to be used as a person's primary residence; provided, that "residential dwelling unit" shall not include inpatient medical care, licensed long-term care and detention or correctional facilities.G.L. c. 40Z, § 2; (ii) analyzing or processing of the information described in clause (i), including with the use of a system, software or process that uses computation; and (iii) recommending of rental prices, lease terms, occupancy levels, or other commercial term to a real estate lessorReal estate lessor"Real estate lessor", any individual, corporation, partnership, association, joint-stock company, trust or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unit.G.L. c. 40Z, § 2. "PersonPerson"Person", any natural person, corporation, partnership, limited liability company, firm or association.G.L. c. 40Z, § 2", any natural personPerson"Person", any natural person, corporation, partnership, limited liability company, firm or association.G.L. c. 40Z, § 2, corporation, partnership, limited liability company, firm or association. "Predispute arbitration agreementPredispute arbitration agreement"Predispute arbitration agreement", an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.G.L. c. 40Z, § 2", an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement. "Predispute joint-action waiverPredispute joint-action waiver"Predispute joint-action waiver", an agreement, whether or not part of a predispute arbitration agreement, that would prohibit or waive the right of one of the parties to participate in a joint, class or collective action in a judicial, arbitral, administrative or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement.G.L. c. 40Z, § 2", an agreement, whether or not part of a predispute arbitration agreementPredispute arbitration agreement"Predispute arbitration agreement", an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.G.L. c. 40Z, § 2, that would prohibit or waive the right of one of the parties to participate in a joint, class or collective action in a judicial, arbitral, administrative or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement. "Real estate lessorReal estate lessor"Real estate lessor", any individual, corporation, partnership, association, joint-stock company, trust or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unit.G.L. c. 40Z, § 2", any individual, corporation, partnership, association, joint-stock company, trust or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unitResidential dwelling unit"Residential dwelling unit", any house, apartment, accessory unit or other unit intended to be used as a person's primary residence; provided, that "residential dwelling unit" shall not include inpatient medical care, licensed long-term care and detention or correctional facilities.G.L. c. 40Z, § 2. "Residential dwelling unitResidential dwelling unit"Residential dwelling unit", any house, apartment, accessory unit or other unit intended to be used as a person's primary residence; provided, that "residential dwelling unit" shall not include inpatient medical care, licensed long-term care and detention or correctional facilities.G.L. c. 40Z, § 2", any house, apartment, accessory unit or other unit intended to be used as a personPerson"Person", any natural person, corporation, partnership, limited liability company, firm or association.G.L. c. 40Z, § 2's primary residence; provided, that "residential dwelling unitResidential dwelling unit"Residential dwelling unit", any house, apartment, accessory unit or other unit intended to be used as a person's primary residence; provided, that "residential dwelling unit" shall not include inpatient medical care, licensed long-term care and detention or correctional facilities.G.L. c. 40Z, § 2" shall not include inpatient medical care, licensed long-term care and detention or correctional facilities. "Service providerService provider"Service provider", any person that performs a coordination function for any real estate lessor or rentor.G.L. c. 40Z, § 2", any personPerson"Person", any natural person, corporation, partnership, limited liability company, firm or association.G.L. c. 40Z, § 2 that performs a coordination function for any real estate lessorReal estate lessor"Real estate lessor", any individual, corporation, partnership, association, joint-stock company, trust or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unit.G.L. c. 40Z, § 2 or rentor.
Defines the key terms used throughout the chapter. The most consequential definition is Coordinate, which describes a three-step process: collecting nonpublic rental market data from competing lessors, computationally analyzing that data, and recommending rental prices or terms back to lessors. The breadth of the coordination definition captures any algorithmic pricing tool that ingests and processes competitively sensitive rental data across multiple lessors — not only AI-based tools but any computational system. Service provider is defined as any person performing this coordination function.
(a) 1 No real estate lessorReal estate lessor"Real estate lessor", any individual, corporation, partnership, association, joint-stock company, trust or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unit.G.L. c. 40Z, § 2, or any agent or subcontractor thereof, shall subscribe to, contract with or otherwise exchange anything of value in return for the services of a service providerService provider"Service provider", any person that performs a coordination function for any real estate lessor or rentor.G.L. c. 40Z, § 2.
(b) 2 No service providerService provider"Service provider", any person that performs a coordination function for any real estate lessor or rentor.G.L. c. 40Z, § 2 shall facilitate an agreement to not compete among real estate lessorsReal estate lessor"Real estate lessor", any individual, corporation, partnership, association, joint-stock company, trust or unincorporated organization that owns real property and leases such property or any portion thereof in the form of a residential dwelling unit.G.L. c. 40Z, § 2 with respect to residential dwelling unitsResidential dwelling unit"Residential dwelling unit", any house, apartment, accessory unit or other unit intended to be used as a person's primary residence; provided, that "residential dwelling unit" shall not include inpatient medical care, licensed long-term care and detention or correctional facilities.G.L. c. 40Z, § 2.
This section imposes the bill's two core prohibitions. Subsection (a) categorically bars real estate lessors — and their agents and subcontractors — from subscribing to, contracting with, or exchanging anything of value for the services of a service provider that performs the coordination function defined in § 2. This is a demand-side prohibition: landlords may not purchase algorithmic rent-coordination services. Subsection (b) is a supply-side prohibition: service providers may not facilitate agreements not to compete among real estate lessors with respect to residential dwelling units. Together, the two provisions target both sides of the algorithmic pricing coordination market.
(a) A violation of this section shall also constitute an unfair method of competition, and a violation of the provisions of chapter 93 and chapter 93A. Nothing in this section shall impair or limit the applicability of either chapter or the antitrust laws, generally.
(b) Pursuant to a motion by the plaintiff promptly made, the court may award simple interest on actual damages sustained by the plaintiff for the period beginning on the date of service of the pleading of the plaintiff setting forth a claim under this chapter and ending on the date of judgment, or for any shorter period therein.
(c) At the election of the personPerson"Person", any natural person, corporation, partnership, limited liability company, firm or association.G.L. c. 40Z, § 2 alleging conduct constituting a violation of this section, or the named representative of a class or in a collective action alleging such conduct, no predispute arbitration agreementPredispute arbitration agreement"Predispute arbitration agreement", an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.G.L. c. 40Z, § 2 or predispute joint-action waiverPredispute joint-action waiver"Predispute joint-action waiver", an agreement, whether or not part of a predispute arbitration agreement, that would prohibit or waive the right of one of the parties to participate in a joint, class or collective action in a judicial, arbitral, administrative or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement.G.L. c. 40Z, § 2 shall be valid or enforceable with respect to a case which is filed under federal, tribal or state or local law and relates to a violation of this chapter.
(d) In the case of any successful action to enforce liability pursuant to this chapter, the costs of the action together with reasonable attorney fees, expert fees and the costs of investigation as determined by the court shall be awarded to plaintiffs. Costs and attorney fees, expert fees and the costs of investigation shall be awarded to the attorney general or municipality where the attorney general or municipality successfully enforces this chapter.
This section establishes the enforcement framework. Violations are deemed unfair methods of competition and violations of chapters 93 and 93A (Massachusetts antitrust and consumer protection statutes), layering this chapter's prohibitions onto the existing enforcement architecture. Courts may award simple interest on actual damages from the date of service through judgment. At the plaintiff's election, predispute arbitration agreements and joint-action waivers are unenforceable — ensuring class and collective actions remain available. Prevailing plaintiffs, the attorney general, and municipalities are entitled to reasonable attorney fees, expert fees, and costs of investigation.
(i)–(ii) In a civil action filed pursuant to the provisions of chapter 93, a complaint: (i) plausibly pleads a violation of chapter 93A if the complaint contains factual allegations demonstrating that the existence of a contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and (ii) need not allege facts tending to exclude the possibility of independent action.
This section modifies the pleading standard for civil actions filed under chapter 93 that relate to violations of this chapter. A complaint plausibly pleads a violation of chapter 93A if factual allegations demonstrate that a contract, combination, or conspiracy in restraint of trade is among the realm of plausible possibilities — and the complaint need not allege facts tending to exclude the possibility of independent action. This effectively lowers the bar for antitrust pleading below the federal Twombly/Iqbal standard, making it easier for plaintiffs to survive a motion to dismiss in algorithmic coordination cases where direct evidence of agreement is difficult to obtain.