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.
(a) "Algorithmic pricing deviceAlgorithmic pricing device"Algorithmic pricing device" means a device that uses 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 of the amount of rent that the landlord may consider charging a prospective tenant or tenant. Algorithmic pricing device includes a service or product that incorporates an algorithmic pricing device. Algorithmic pricing device does not include any of the following: (i) Any report published periodically, but not more frequently than monthly, by a trade association that receives tenant data and publishes it in an aggregated and anonymous manner. (ii) A product used for establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, this state, the United States government, or a political subdivision of this state.MCL 554.601(a)" means a device that uses 1 or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenantsTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j) by landlordsLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b), for the purpose of advising a landlord of the amount of rent that the landlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b) may consider charging a prospective tenantProspective tenant"Prospective tenant" means an individual who makes a request to a landlord to rent or lease a rental unit.MCL 554.601(d) or tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j). Algorithmic pricing deviceAlgorithmic pricing device"Algorithmic pricing device" means a device that uses 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 of the amount of rent that the landlord may consider charging a prospective tenant or tenant. Algorithmic pricing device includes a service or product that incorporates an algorithmic pricing device. Algorithmic pricing device does not include any of the following: (i) Any report published periodically, but not more frequently than monthly, by a trade association that receives tenant data and publishes it in an aggregated and anonymous manner. (ii) A product used for establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, this state, the United States government, or a political subdivision of this state.MCL 554.601(a) includes a service or product that incorporates an algorithmic pricing deviceAlgorithmic pricing device"Algorithmic pricing device" means a device that uses 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 of the amount of rent that the landlord may consider charging a prospective tenant or tenant. Algorithmic pricing device includes a service or product that incorporates an algorithmic pricing device. Algorithmic pricing device does not include any of the following: (i) Any report published periodically, but not more frequently than monthly, by a trade association that receives tenant data and publishes it in an aggregated and anonymous manner. (ii) A product used for establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, this state, the United States government, or a political subdivision of this state.MCL 554.601(a). Algorithmic pricing deviceAlgorithmic pricing device"Algorithmic pricing device" means a device that uses 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 of the amount of rent that the landlord may consider charging a prospective tenant or tenant. Algorithmic pricing device includes a service or product that incorporates an algorithmic pricing device. Algorithmic pricing device does not include any of the following: (i) Any report published periodically, but not more frequently than monthly, by a trade association that receives tenant data and publishes it in an aggregated and anonymous manner. (ii) A product used for establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, this state, the United States government, or a political subdivision of this state.MCL 554.601(a) does not include any of the following: (i) Any report published periodically, but not more frequently than monthly, by a trade association that receives tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j) data and publishes it in an aggregated and anonymous manner. (ii) A product used for establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, this state, the United States government, or a political subdivision of this state.
(b) "LandlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b)" means any of the following: (i) The owner, lessor, or sublessor of a rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f) or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.
(c) "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, rental agreement start and end dates, or similar data, regardless of whether the data is attributable to a specific competitor or is anonymous, and that is derived from or otherwise provided by another person that competes in the same market as a person or a related market.MCL 554.601(c)" means information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, rental agreementRental agreement"Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.MCL 554.601(e) start and end dates, or similar data, regardless of whether the data is attributable to a specific competitor or is anonymous, and that is derived from or otherwise provided by another person that competes in the same market as a person or a related market.
(d) "Prospective tenantProspective tenant"Prospective tenant" means an individual who makes a request to a landlord to rent or lease a rental unit.MCL 554.601(d)" means an individual who makes a request to a landlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b) to rent or lease a rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f).
(e) "Rental agreementRental agreement"Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.MCL 554.601(e)" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f).
(f) "Rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f)" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j). Rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f) includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.
(g)–(i) "Security deposit" means a deposit, in any amount, paid by the tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j) to the landlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b) or the landlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b)'s agent to be held for the term of the rental agreementRental agreement"Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.MCL 554.601(e), or any part of the term, and includes any required prepayment of rent other than the first full rental period of the lease agreement; any sum required to be paid as rent in any rental period in excess of the average rent for the term; and any other amount of money or property returnable to the tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j) on condition of return of the rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f) by the tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j) in condition as required by the rental agreementRental agreement"Rental agreement" means an agreement that establishes or modifies the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a rental unit.MCL 554.601(e). Security deposit does not include either of the following: (i) An amount paid for an option to purchase, pursuant to a lease with an option to purchase, unless it is shown the intent was to evade this act. (ii) An amount paid as a subscription for or purchase of a membership in a cooperative housing association incorporated under the laws of this state. "Senior citizen housing" means housing for individuals 62 years of age or older that is subsidized in whole or in part under any local, state, or federal program. "Source of income" includes benefits or subsidy programs including housing assistance, housing choice vouchers provided under 42 USC 1437f, public assistance, veterans' benefits, Social Security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity.
(j) "TenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j)" means an individual who occupies a rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f) for residential purposes with the landlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b)'s consent for an agreed upon consideration.
Section 1 amends the existing definitions section of Michigan's landlord-tenant act to add three new defined terms: algorithmic pricing device, nonpublic competitor data, and prospective tenant. The algorithmic pricing device definition is broad — covering any algorithm-based tool that calculates rent data to advise landlords — but includes two notable carve-outs: periodic aggregated trade association reports (published no more than monthly) and affordable housing program tools. The nonpublic competitor data definition captures competitively sensitive rental market information regardless of whether it is anonymized, which is significant because it means landlords cannot circumvent the prohibition by using anonymized data feeds from competitors.
(1)(a)–(b) 1 A landlordLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b) shall not use, incorporate, or train an algorithmic pricing deviceAlgorithmic pricing device"Algorithmic pricing device" means a device that uses 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 of the amount of rent that the landlord may consider charging a prospective tenant or tenant. Algorithmic pricing device includes a service or product that incorporates an algorithmic pricing device. Algorithmic pricing device does not include any of the following: (i) Any report published periodically, but not more frequently than monthly, by a trade association that receives tenant data and publishes it in an aggregated and anonymous manner. (ii) A product used for establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, this state, the United States government, or a political subdivision of this state.MCL 554.601(a) with nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, rental agreement start and end dates, or similar data, regardless of whether the data is attributable to a specific competitor or is anonymous, and that is derived from or otherwise provided by another person that competes in the same market as a person or a related market.MCL 554.601(c) to do any of the following for the purpose of advising the landlord of the amount of rent to charge a tenantTenant"Tenant" means an individual who occupies a rental unit for residential purposes with the landlord's consent for an agreed upon consideration.MCL 554.601(j) or prospective tenantProspective tenant"Prospective tenant" means an individual who makes a request to a landlord to rent or lease a rental unit.MCL 554.601(d) for the occupancy of a rental unitRental unit"Rental unit" means a structure or part of a structure used as a home, residence, or sleeping unit by a single person or household unit, or any grounds, or other facilities or area promised for the use of a residential tenant. Rental unit includes, but is not limited to, apartment units, boarding houses, rooming houses, mobile home spaces, and single and 2-family dwellings.MCL 554.601(f): (a) Coordinate price, supply, or other rental housing information among 2 or more landlordsLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b). (b) Enter into an agreement or contract with other landlordsLandlord"Landlord" means any of the following: (i) The owner, lessor, or sublessor of a rental unit or the property of which it is a part. (ii) A person authorized to exercise any aspect of the management of the premises, including a person that, directly or indirectly, acts as a rental agent or receives rent, other than as a bona fide purchaser, and that has no obligation to deliver the receipts to another person.MCL 554.601(b) in restraint of the rental housing market.
(2) 1 A violation of subsection (1) constitutes a violation of the Michigan antitrust reform act, 1984 PA 274, MCL 445.771 to 445.788.
Section 1e is the operative heart of the bill. It prohibits landlords from using, incorporating, or training an algorithmic pricing device with nonpublic competitor data for the purpose of advising on rent amounts, when that use serves to coordinate pricing or supply information among landlords or to enter into market-restraining agreements. The prohibition targets the specific practice of feeding competitively sensitive rental data into algorithmic tools — the conduct at the center of the RealPage antitrust litigation. By framing the violation as a per se antitrust offense under the Michigan Antitrust Reform Act, the bill avoids the need to prove an actual anticompetitive effect in individual cases.
The two prohibited uses — price coordination among landlords and agreements in restraint of the rental housing market — track traditional antitrust categories (horizontal price-fixing and agreements in restraint of trade), adapted to the algorithmic intermediary context.