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.
(a) 1 It shall be unlawful to sell, license, or otherwise provide to a landlord an algorithmic deviceAlgorithmic device"Algorithmic device" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor data concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic device" shall include a product or service that incorporates an algorithmic device, but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.C.56:9-2(e) that sets, recommends, or advises on rents or occupancy rates that may be achieved for residential dwelling units in the State.
(b) 2 It shall be unlawful for a landlord to use an algorithmic deviceAlgorithmic device"Algorithmic device" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor data concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic device" shall include a product or service that incorporates an algorithmic device, but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.C.56:9-2(e) when setting rents or occupancy rates for residential dwelling units in the State. Each separate month that a violation exists or continues, and each separate residential dwelling unit for which the landlord uses an algorithmic deviceAlgorithmic device"Algorithmic device" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor data concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic device" shall include a product or service that incorporates an algorithmic device, but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.C.56:9-2(e), shall constitute a separate and distinct violation.
(c) In addition to the penalties established pursuant to section 7 of P.L.1970, c.73 (C.56:9-7), the Attorney General may file a civil action for a violation of subsection a. or b. of this section, or both, for damages, injunctive relief, restitution or return of illegal profits, civil penalties of up to $1000 per violation, or some combination of these penalties. The court shall award reasonable attorney's fees and costs to the Attorney General if the Attorney General is the prevailing party in such a civil action.
Section 1 establishes two distinct prohibitions and an enforcement mechanism. The first prohibition targets vendors — it is unlawful to sell, license, or otherwise provide an algorithmic device to a landlord for purposes of setting, recommending, or advising on rents or occupancy rates for residential dwelling units in New Jersey. The second prohibition targets landlords directly, making it unlawful for a landlord to use such a device when setting rents or occupancy rates. Each month of continued use and each affected unit is a separate violation.
Subsection (c) grants the Attorney General authority to bring civil actions for violations, with available remedies including damages, injunctive relief, restitution, civil penalties up to $1,000 per violation, and mandatory attorney's fees for the prevailing Attorney General. This enforcement mechanism supplements the existing penalty provisions of the New Jersey Antitrust Act.
(a)–(d) a. As used in this act, unless the context otherwise requires "personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.C.56:9-2(a)" shall mean any natural personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.C.56:9-2(a) or personsPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.C.56:9-2(a), or any corporation, partnership, company, trust or association of personsPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.C.56:9-2(a). b. "Trade or commerce" shall include all economic activity involving or relating to any commodity or service. c. "Commodity" shall mean any kind of real or personal property. d. "Service" shall mean any activity which is performed in whole or in part for the purpose of financial gain, including but not limited to sale, rental, leasing or licensing for use.
(e) "Algorithmic deviceAlgorithmic device"Algorithmic device" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor data concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic device" shall include a product or service that incorporates an algorithmic device, but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.C.56:9-2(e)" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor dataNon-public competitor data"Non-public competitor data" shall mean information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and other related data, regardless of whether the information is attributable to a specific competitor or anonymized, or whether it is derived from, or otherwise provided by, another person that competes in the same market or a related market.C.56:9-2(f) concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic deviceAlgorithmic device"Algorithmic device" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor data concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic device" shall include a product or service that incorporates an algorithmic device, but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.C.56:9-2(e)" shall include a product or service that incorporates an algorithmic deviceAlgorithmic device"Algorithmic device" shall mean a device, such as a software program, that uses one or more algorithms to perform calculations of non-public competitor data concerning local, statewide, or regional rents or occupancy rates, for the purpose of advising a landlord whether to leave a unit vacant or on the amount of rent that the landlord requires from a tenant. "Algorithmic device" shall include a product or service that incorporates an algorithmic device, but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.C.56:9-2(e), but does not include: (1) any report published by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (2) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a government entity.
(f) "Non-public competitor dataNon-public competitor data"Non-public competitor data" shall mean information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and other related data, regardless of whether the information is attributable to a specific competitor or anonymized, or whether it is derived from, or otherwise provided by, another person that competes in the same market or a related market.C.56:9-2(f)" shall mean information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and other related data, regardless of whether the information is attributable to a specific competitor or anonymized, or whether it is derived from, or otherwise provided by, another personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.C.56:9-2(a) that competes in the same market or a related market.
Section 2 amends the definitions section of the New Jersey Antitrust Act (N.J.S.A. 56:9-2) to add two new defined terms: algorithmic device and non-public competitor data. The algorithmic device definition is notable for its functional scope — it covers any software that uses algorithms to perform calculations on non-public competitor data concerning rents or occupancy rates for the purpose of advising landlords. The definition expressly includes products or services that incorporate such a device. Two carve-outs apply: trade association reports that aggregate and anonymize renter data, and products used for affordable housing program compliance.
The non-public competitor data definition is deliberately broad, encompassing actual rent prices, occupancy rates, lease dates, and related data regardless of whether the information is attributable to a specific competitor or anonymized, or whether it comes directly from a competitor or through an intermediary.
This act shall take effect on the first day of the second month next following enactment.
Section 3 sets the effective date at the first day of the second month following enactment, providing a brief implementation window for affected parties to come into compliance.