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)–(10) The following definitions apply in this Article: (1) Coordinate or coordinating functionCoordinate or coordinating functionCoordinate or coordinating function. – Any of the following with respect to a service provider: a. 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 from two or more real estate lessors or from public databases. b. Analyzing or processing of the information described in sub-subdivision a. of this subdivision using a system, software, or process that uses computation. c. Recommending rental prices, lease terms, or occupancy levels to a real estate lessor. d. Using a pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data to set the amount of rent for a residential dwelling unit or any other commercial term contained within a residential rental agreement.G.S. § 42-80(1). – Any of the following with respect to a service providerService providerService provider. – A person that provides a coordinating function for a real estate lessor.G.S. § 42-80(10): a. 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 unitResidential dwelling unit. – Any house, apartment, accessory unit, or other housing unit intended to be used as a person's primary residence. This term does not include inpatient medical care, licensed long-term care, or detention or correctional facilities.G.S. § 42-80(9) from two or more real estate lessorsReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8) or from public databases. b. Analyzing or processing of the information described in sub-subdivision a. of this subdivision using a system, software, or process that uses computation. c. Recommending rental prices, lease terms, or occupancy levels to a real estate lessorReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8). d. Using a pricing algorithmPricing algorithmPricing algorithm. – Any process using calculations that analyzes data for the purpose of recommending or setting prices or commercial terms, including processes that utilize machine learning or other artificial intelligence techniques.G.S. § 42-80(7) that uses, incorporates, or was trained with nonpublic competitor dataNonpublic competitor dataNonpublic competitor data. – Nonpublic data that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market. This term does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.G.S. § 42-80(2) to set the amount of rent for a residential dwelling unitResidential dwelling unitResidential dwelling unit. – Any house, apartment, accessory unit, or other housing unit intended to be used as a person's primary residence. This term does not include inpatient medical care, licensed long-term care, or detention or correctional facilities.G.S. § 42-80(9) or any other commercial term contained within a residential rental agreement. (2) Nonpublic competitor dataNonpublic competitor dataNonpublic competitor data. – Nonpublic data that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market. This term does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.G.S. § 42-80(2). – Nonpublic dataNonpublic dataNonpublic data. – Information that is not widely available or easily accessible to the public, including information about price, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized.G.S. § 42-80(3) that is derived from or otherwise provided by another personPersonPerson. – As defined in G.S. 12-3.G.S. § 42-80(4) that competes in the same market as a personPersonPerson. – As defined in G.S. 12-3.G.S. § 42-80(4), or a related market. This term does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results. (3) Nonpublic dataNonpublic dataNonpublic data. – Information that is not widely available or easily accessible to the public, including information about price, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized.G.S. § 42-80(3). – Information that is not widely available or easily accessible to the public, including information about price, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. (4) PersonPersonPerson. – As defined in G.S. 12-3.G.S. § 42-80(4). – As defined in G.S. 12-3. (5) Pre-dispute arbitration agreementPre-dispute arbitration agreementPre-dispute arbitration agreement. – An agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.G.S. § 42-80(5). – An agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement. (6) Pre-dispute joint-action waiverPre-dispute joint-action waiverPre-dispute joint-action waiver. – An agreement, whether or not part of a pre-dispute arbitration agreement that would prohibit, or waive the right of, one of the parties to the agreement 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.S. § 42-80(6). – An agreement, whether or not part of a pre-dispute arbitration agreementPre-dispute arbitration agreementPre-dispute arbitration agreement. – An agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.G.S. § 42-80(5) that would prohibit, or waive the right of, one of the parties to the agreement 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. (7) Pricing algorithmPricing algorithmPricing algorithm. – Any process using calculations that analyzes data for the purpose of recommending or setting prices or commercial terms, including processes that utilize machine learning or other artificial intelligence techniques.G.S. § 42-80(7). – Any process using calculations that analyzes data for the purpose of recommending or setting prices or commercial terms, including processes that utilize machine learning or other artificial intelligence techniques. (8) Real estate lessorReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8). – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unitResidential dwelling unitResidential dwelling unit. – Any house, apartment, accessory unit, or other housing unit intended to be used as a person's primary residence. This term does not include inpatient medical care, licensed long-term care, or detention or correctional facilities.G.S. § 42-80(9). (9) Residential dwelling unitResidential dwelling unitResidential dwelling unit. – Any house, apartment, accessory unit, or other housing unit intended to be used as a person's primary residence. This term does not include inpatient medical care, licensed long-term care, or detention or correctional facilities.G.S. § 42-80(9). – Any house, apartment, accessory unit, or other housing unit intended to be used as a personPersonPerson. – As defined in G.S. 12-3.G.S. § 42-80(4)'s primary residence. This term does not include inpatient medical care, licensed long-term care, or detention or correctional facilities. (10) Service providerService providerService provider. – A person that provides a coordinating function for a real estate lessor.G.S. § 42-80(10). – A personPersonPerson. – As defined in G.S. 12-3.G.S. § 42-80(4) that provides a coordinating function for a real estate lessorReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8).
This section establishes the defined terms for the Article. The centerpiece is the broadly constructed definition of coordinating function, which captures the full pipeline of algorithmic rent-setting: collecting competitor pricing and occupancy data, computationally processing that data, recommending prices or lease terms, and using pricing algorithms trained on nonpublic competitor data. The definitions of nonpublic data and nonpublic competitor data are deliberately broad — anonymization does not remove data from scope — while carving out narrative industry reports, news, and generalized survey results.
(a) 1 It is unlawful for any real estate lessorReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8), or any agent or subcontractor of a real estate lessorReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8), within North Carolina to subscribe to, contract for, or otherwise exchange anything of value in return for coordinating functions.
(b) 2 It is unlawful for any service providerService providerService provider. – A person that provides a coordinating function for a real estate lessor.G.S. § 42-80(10) to facilitate an agreement to not compete among real estate lessorsReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8) with respect to residential dwelling unitsResidential dwelling unitResidential dwelling unit. – Any house, apartment, accessory unit, or other housing unit intended to be used as a person's primary residence. This term does not include inpatient medical care, licensed long-term care, or detention or correctional facilities.G.S. § 42-80(9) within the State of North Carolina.
This section creates the Article's two core prohibitions. Subsection (a) targets the demand side — real estate lessors and their agents or subcontractors — by making it unlawful to subscribe to, contract for, or otherwise exchange anything of value for coordinating functions. Subsection (b) targets the supply side — service providers that offer algorithmic rent-setting tools — by prohibiting them from facilitating agreements not to compete among real estate lessors with respect to residential dwelling units in North Carolina.
The two prohibitions together are designed to eliminate algorithmic rent coordination at both ends of the transaction: landlords may not buy the service, and vendors may not sell or facilitate the anticompetitive function.
(a) A violation of any provision of this Article constitutes an unfair or deceptive trade practice under G.S. 75-1.1. Any party aggrieved by a violation of this Article may bring a cause of action against the real estate lessorReal estate lessorReal estate lessor. – Any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns and leases real property or any portion thereof in the form of a residential dwelling unit.G.S. § 42-80(8) or service providerService providerService provider. – A person that provides a coordinating function for a real estate lessor.G.S. § 42-80(10), as appropriate, and is entitled to the relief available in Chapter 75 of the General Statutes. The Attorney General is hereby empowered to enforce this Article as allowed by Chapter 75 of the General Statutes.
(b) Notwithstanding any other provision of law, at the election of the personPersonPerson. – As defined in G.S. 12-3.G.S. § 42-80(4) alleging conduct constituting a violation of this section, or the named representative of a class in a collective action alleging such conduct, no pre-dispute arbitration agreementPre-dispute arbitration agreementPre-dispute arbitration agreement. – An agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement.G.S. § 42-80(5) or pre-dispute joint-action waiverPre-dispute joint-action waiverPre-dispute joint-action waiver. – An agreement, whether or not part of a pre-dispute arbitration agreement that would prohibit, or waive the right of, one of the parties to the agreement 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.S. § 42-80(6) shall be valid or enforceable with respect to a case which relates to a violation of this Article.
This section establishes the enforcement framework by classifying all violations as unfair or deceptive trade practices under G.S. 75-1.1, which triggers North Carolina's full UDAP remedial scheme — including treble damages, attorney's fees, and injunctive relief. Both the Attorney General and aggrieved private parties may enforce. Subsection (b) adds a significant procedural protection: at the plaintiff's election, pre-dispute arbitration agreements and pre-dispute joint-action waivers are unenforceable, ensuring that tenants and other aggrieved parties retain access to class actions and jury trials.