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.
(14)(xlix) SECTION 8–122 OF THE REAL PROPERTY ARTICLE;
This provision amends the enumerated list of unfair, abusive, or deceptive trade practices under the Maryland Consumer Protection Act to add violations of the new Real Property § 8-122 (the algorithmic rent-setting prohibition). This is a cross-reference provision that brings the rent-setting prohibition within the enforcement framework of Title 13 of the Commercial Law Article.
(A)(1)–(7) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) "ALGORITHMAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Md. Code, Com. Law § 13-321(A)(2)" MEANS A COMPUTATIONAL AUTOMATED PROCESS THAT USES A SET OF RULES TO DEFINE A SEQUENCE OF OPERATIONS. (3) "CLEAR AND CONSPICUOUS DISCLOSUREClear and conspicuous disclosure"Clear and conspicuous disclosure" means disclosure: (I) in the same medium as, and provided on, at, or near and contemporaneous with, each communication of a price for which notice is required; and (II) using lettering and wording that is easily visible and understandable to a consumer.Md. Code, Com. Law § 13-321(A)(3)" MEANS DISCLOSURE: (I) IN THE SAME MEDIUM AS, AND PROVIDED ON, AT, OR NEAR AND CONTEMPORANEOUS WITH, EACH COMMUNICATION OF A PRICE FOR WHICH NOTICE IS REQUIRED; AND (II) USING LETTERING AND WORDING THAT IS EASILY VISIBLE AND UNDERSTANDABLE TO A CONSUMER. (4) "COMMUNICATIONCommunication"Communication" means an advertisement, a display, an image, an offer, or an announcement.Md. Code, Com. Law § 13-321(A)(4)" MEANS AN ADVERTISEMENT, A DISPLAY, AN IMAGE, AN OFFER, OR AN ANNOUNCEMENT. (5) "DYNAMIC PRICINGDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions.Md. Code, Com. Law § 13-321(A)(5)" MEANS PRICING THAT FLUCTUATES DEPENDENT ON CONDITIONS. (6) (I) "PERSONAL DATAPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data.Md. Code, Com. Law § 13-321(A)(6)" MEANS ANY DATA THAT IDENTIFIES OR COULD REASONABLY BE LINKED, DIRECTLY OR INDIRECTLY, WITH A SPECIFIC CONSUMER OR DEVICE. (II) "PERSONAL DATAPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data.Md. Code, Com. Law § 13-321(A)(6)" DOES NOT INCLUDE LOCATION DATA. (7) "PERSONALIZED ALGORITHMIC PRICINGPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Md. Code, Com. Law § 13-321(A)(7)" MEANS DYNAMIC PRICINGDynamic pricing"Dynamic pricing" means pricing that fluctuates dependent on conditions.Md. Code, Com. Law § 13-321(A)(5) SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Md. Code, Com. Law § 13-321(A)(2) THAT USES PERSONAL DATAPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data.Md. Code, Com. Law § 13-321(A)(6).
(B) THIS SECTION DOES NOT APPLY TO: (1) CONDUCT OF A MERCHANT THAT IS REGULATED UNDER THE INSURANCE ARTICLE; (2) (I) A FINANCIAL INSTITUTION, AS DEFINED IN § 1–101 OF THE FINANCIAL INSTITUTIONS ARTICLE; OR (II) A FINANCIAL INSTITUTION OR AN AFFILIATE OF A FINANCIAL INSTITUTION THAT IS SUBJECT TO TITLE V OF THE GRAMM–LEACH–BLILEY ACT; OR (3) A LOWER PRICE THAT IS OFFERED TO A CONSUMER WHO HAS AN EXISTING SUBSCRIPTION–BASED CONTRACT OR AGREEMENT FOR A CONSUMER GOOD OR SERVICE WITH A MERCHANT THAN THE PRICE OFFERED TO A CONSUMER WITHOUT THE SUBSCRIPTION–BASED CONTRACT OR AGREEMENT.
(C) 1 A MERCHANT MAY NOT SET THE PRICE OF SPECIFIC CONSUMER GOODS OR SERVICES USING PERSONALIZED ALGORITHMIC PRICINGPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Md. Code, Com. Law § 13-321(A)(7) AND DIRECTLY OR INDIRECTLY ADVERTISE, PROMOTE, LABEL, OR PUBLISH A COMMUNICATION OF THE PERSONALIZED ALGORITHMIC PRICINGPersonalized algorithmic pricing"Personalized algorithmic pricing" means dynamic pricing set by an algorithm that uses personal data.Md. Code, Com. Law § 13-321(A)(7) FOR THE CONSUMER GOOD OR SERVICE TO A CONSUMER IN THE STATE, UNLESS THE MERCHANT INCLUDES WITH THE COMMUNICATIONCommunication"Communication" means an advertisement, a display, an image, an offer, or an announcement.Md. Code, Com. Law § 13-321(A)(4) A CLEAR AND CONSPICUOUS DISCLOSUREClear and conspicuous disclosure"Clear and conspicuous disclosure" means disclosure: (I) in the same medium as, and provided on, at, or near and contemporaneous with, each communication of a price for which notice is required; and (II) using lettering and wording that is easily visible and understandable to a consumer.Md. Code, Com. Law § 13-321(A)(3) WITH THE FOLLOWING STATEMENT: "THIS PRICE WAS SET BY AN ALGORITHMAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Md. Code, Com. Law § 13-321(A)(2) USING YOUR PERSONAL DATAPersonal data"Personal data" means any data that identifies or could reasonably be linked, directly or indirectly, with a specific consumer or device. "Personal data" does not include location data.Md. Code, Com. Law § 13-321(A)(6)".
Section 13-321 creates a disclosure obligation for merchants who use personalized algorithmic pricing — dynamic pricing set by an algorithm using personal data. When a merchant sets a price this way and communicates it to a Maryland consumer via advertisement, display, image, offer, or announcement, the merchant must include the mandated statement: "This price was set by an algorithm using your personal data." The disclosure must appear in the same medium as the price communication, be contemporaneous with it, and use easily visible and understandable lettering.
The section carves out three categories: conduct regulated under the Insurance Article, financial institutions (as defined in the Financial Institutions Article or subject to the Gramm-Leach-Bliley Act), and loyalty-type subscription discounts where an existing subscriber receives a lower price than a non-subscriber. Notably, personal data excludes location data, so purely location-based dynamic pricing would not trigger the disclosure requirement.
(A)(1)–(5) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) "ALGORITHMAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Md. Code, Com. Law § 13-321(A)(2)" MEANS A COMPUTATIONAL AUTOMATED PROCESS THAT USES A SET OF RULES TO DEFINE A SEQUENCE OF OPERATIONS. (3) "ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating function.Md. Code, Real Prop. § 8-122(A)(3)" MEANS ANY MACHINE, DEVICE, COMPUTER PROGRAM, OR COMPUTER SOFTWARE THAT ON ITS OWN OR WITH HUMAN ASSISTANCE PERFORMS A COORDINATING FUNCTIONCoordinating function"Coordinating function" means to: 1. Collect historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential units from two or more residential rental property owners or managers, if at least two or more of the residential rental property owners or managers from whom the information is collected are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; 2. Analyze or process the information described in item 1 of this subparagraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and 3. Recommend rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager. "Coordinating function" does not include a product used for the purpose of establishing rent or income limits in accordance with rent stabilization law or an affordable housing program administered by a federal, state, or local government or other political subdivision.Md. Code, Real Prop. § 8-122(A)(4). (4) (I) "COORDINATING FUNCTIONCoordinating function"Coordinating function" means to: 1. Collect historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential units from two or more residential rental property owners or managers, if at least two or more of the residential rental property owners or managers from whom the information is collected are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; 2. Analyze or process the information described in item 1 of this subparagraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and 3. Recommend rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager. "Coordinating function" does not include a product used for the purpose of establishing rent or income limits in accordance with rent stabilization law or an affordable housing program administered by a federal, state, or local government or other political subdivision.Md. Code, Real Prop. § 8-122(A)(4)" MEANS TO: 1. COLLECT HISTORICAL OR CONTEMPORANEOUS PRICES, SUPPLY LEVELS, OR LEASE OR RENTAL CONTRACT TERMINATION AND RENEWAL DATES OF RESIDENTIAL UNITS FROM TWO OR MORE RESIDENTIAL RENTAL PROPERTY OWNERS OR MANAGERS, IF AT LEAST TWO OR MORE OF THE RESIDENTIAL RENTAL PROPERTY OWNERS OR MANAGERS FROM WHOM THE INFORMATION IS COLLECTED ARE NOT WHOLLY OWNED SUBSIDIARIES OF THE SAME PARENT ENTITY OR OTHERWISE OWNED OR MANAGED BY THE SAME RESIDENTIAL RENTAL PROPERTY OWNER OR MANAGERResidential rental property owner or manager"Residential rental property owner or manager" means a person that manages or directly or indirectly and in whole or in part owns or is a beneficial owner of at least one residential rental property in the State.Md. Code, Real Prop. § 8-122(A)(5); 2. ANALYZE OR PROCESS THE INFORMATION DESCRIBED IN ITEM 1 OF THIS SUBPARAGRAPH USING A SYSTEM, SOFTWARE, OR PROCESS THAT USES COMPUTATION, INCLUDING BY USING THAT INFORMATION TO TRAIN AN ALGORITHMAlgorithm"Algorithm" means a computational automated process that uses a set of rules to define a sequence of operations.Md. Code, Com. Law § 13-321(A)(2); AND 3. RECOMMEND RENTAL PRICES, LEASE RENEWAL TERMS, IDEAL OCCUPANCY LEVELS, OR OTHER LEASE TERMS AND CONDITIONS TO A RESIDENTIAL RENTAL PROPERTY OWNER OR MANAGERResidential rental property owner or manager"Residential rental property owner or manager" means a person that manages or directly or indirectly and in whole or in part owns or is a beneficial owner of at least one residential rental property in the State.Md. Code, Real Prop. § 8-122(A)(5). (II) "COORDINATING FUNCTIONCoordinating function"Coordinating function" means to: 1. Collect historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential units from two or more residential rental property owners or managers, if at least two or more of the residential rental property owners or managers from whom the information is collected are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; 2. Analyze or process the information described in item 1 of this subparagraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and 3. Recommend rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager. "Coordinating function" does not include a product used for the purpose of establishing rent or income limits in accordance with rent stabilization law or an affordable housing program administered by a federal, state, or local government or other political subdivision.Md. Code, Real Prop. § 8-122(A)(4)" DOES NOT INCLUDE A PRODUCT USED FOR THE PURPOSE OF ESTABLISHING RENT OR INCOME LIMITS IN ACCORDANCE WITH RENT STABILIZATION LAW OR AN AFFORDABLE HOUSING PROGRAM ADMINISTERED BY A FEDERAL, STATE, OR LOCAL GOVERNMENT OR OTHER POLITICAL SUBDIVISION. (5) "RESIDENTIAL RENTAL PROPERTY OWNER OR MANAGERResidential rental property owner or manager"Residential rental property owner or manager" means a person that manages or directly or indirectly and in whole or in part owns or is a beneficial owner of at least one residential rental property in the State.Md. Code, Real Prop. § 8-122(A)(5)" MEANS A PERSON THAT MANAGES OR DIRECTLY OR INDIRECTLY AND IN WHOLE OR IN PART OWNS OR IS A BENEFICIAL OWNER OF AT LEAST ONE RESIDENTIAL RENTAL PROPERTY IN THE STATE.
(B) 2 A PERSON MAY NOT OPERATE OR LICENSE SOFTWARE, A DATA ANALYTICS SERVICE, OR AN ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating function.Md. Code, Real Prop. § 8-122(A)(3) THAT PERFORMS A COORDINATING FUNCTIONCoordinating function"Coordinating function" means to: 1. Collect historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential units from two or more residential rental property owners or managers, if at least two or more of the residential rental property owners or managers from whom the information is collected are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; 2. Analyze or process the information described in item 1 of this subparagraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and 3. Recommend rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager. "Coordinating function" does not include a product used for the purpose of establishing rent or income limits in accordance with rent stabilization law or an affordable housing program administered by a federal, state, or local government or other political subdivision.Md. Code, Real Prop. § 8-122(A)(4) BETWEEN, OR ON BEHALF OF, TWO OR MORE RESIDENTIAL RENTAL PROPERTY OWNERS OR MANAGERS TO KNOWINGLY OR RECKLESSLY FACILITATE AN AGREEMENT BETWEEN OR AMONG THE RESIDENTIAL RENTAL PROPERTY OWNERS OR MANAGERS.
(C) 3 A RESIDENTIAL RENTAL PROPERTY OWNER OR MANAGERResidential rental property owner or manager"Residential rental property owner or manager" means a person that manages or directly or indirectly and in whole or in part owns or is a beneficial owner of at least one residential rental property in the State.Md. Code, Real Prop. § 8-122(A)(5) MAY NOT KNOWINGLY OR RECKLESSLY SET OR ADJUST RENTAL PRICES, LEASE RENEWAL TERMS, OCCUPANCY LEVELS, OR OTHER LEASE TERMS AND CONDITIONS IN ANY RESIDENTIAL RENTAL PROPERTY BASED ON A RECOMMENDATION FROM SOFTWARE, A DATA ANALYTICS SERVICE, OR AN ALGORITHMIC DEVICEAlgorithmic device"Algorithmic device" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating function.Md. Code, Real Prop. § 8-122(A)(3) THAT PERFORMS A COORDINATING FUNCTIONCoordinating function"Coordinating function" means to: 1. Collect historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential units from two or more residential rental property owners or managers, if at least two or more of the residential rental property owners or managers from whom the information is collected are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; 2. Analyze or process the information described in item 1 of this subparagraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and 3. Recommend rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager. "Coordinating function" does not include a product used for the purpose of establishing rent or income limits in accordance with rent stabilization law or an affordable housing program administered by a federal, state, or local government or other political subdivision.Md. Code, Real Prop. § 8-122(A)(4).
(D) A VIOLATION OF THIS SECTION IS: (1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE PRACTICE WITHIN THE MEANING OF TITLE 13 OF THE COMMERCIAL LAW ARTICLE; AND (2) SUBJECT TO THE ENFORCEMENT AND PENALTY PROVISIONS CONTAINED IN TITLE 13 OF THE COMMERCIAL LAW ARTICLE.
Section 8-122 targets algorithmic rent-setting tools that collect competitive rental data from multiple unaffiliated landlords, process it computationally, and recommend rental prices or lease terms — the pattern exemplified by products like RealPage's YieldStar. The section imposes two parallel prohibitions: one on the software operators and licensors who provide or license such coordinating tools, and one on the residential rental property owners or managers who use them.
The coordinating function definition is carefully scoped: it requires data collection from two or more unaffiliated property owners or managers, computational analysis of that data (including algorithm training), and price or lease-term recommendations. Tools used solely for government-administered rent stabilization or affordable housing programs are carved out. The knowledge standard is knowingly or recklessly, not strict liability. Violations are classified as unfair, abusive, or deceptive trade practices under the Maryland Consumer Protection Act.