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.
Section 1 establishes the short title of the chapter as the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act. No compliance obligations are imposed.
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.
Section 2 defines the key terms used throughout the chapter. The central definition is Coordinate, which captures the full pipeline of algorithmic rent-setting services: collecting market data (prices, supply levels, occupancy rates, lease dates), computationally analyzing that data, and recommending rental prices or lease terms to lessors. The definition of Service provider is any person that performs this coordination function. The section also defines Real estate lessor broadly and carves out institutional facilities from Residential dwelling unit.
(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.
Section 3 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 algorithmic rent coordination. This is a per se ban: there is no safe harbor for transparent use, competitive-impact analysis, or independent pricing decisions. Subsection (b) separately prohibits service providers from facilitating agreements not to compete among lessors with respect to residential dwelling units. Together, these provisions target both the demand side (lessors purchasing algorithmic coordination) and the supply side (providers facilitating anticompetitive coordination).
(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.
Section 4 establishes the enforcement framework. Violations are deemed unfair methods of competition and violations of Massachusetts chapters 93 and 93A, incorporating the full enforcement machinery of those statutes — including the attorney general's authority and the Chapter 93A private right of action with treble damages. The section expressly preserves the applicability of existing antitrust law. It authorizes courts to award simple interest on actual damages, mandates fee-shifting (attorney fees, expert fees, investigation costs) to successful plaintiffs and to the attorney general or municipalities, and — critically — renders predispute arbitration agreements and joint-action waivers unenforceable at the plaintiff's election.
(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.
Section 5 lowers the pleading threshold for civil actions filed under Chapter 93 that allege violations of Chapter 93A in connection with algorithmic rent coordination. A complaint need only plausibly plead that a contract, combination, or conspiracy in restraint of trade exists — it need not allege facts tending to exclude the possibility of independent action. This effectively overrides the Twombly pleading standard for state-court antitrust claims arising under this chapter, making it significantly easier for tenants and classes to survive a motion to dismiss.