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, including artificial intelligence, 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) (as amended by Section 2) 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, including artificial intelligence, 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) (as amended by Section 2) 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, including artificial intelligence, 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) (as amended by Section 2), shall constitute a separate and distinct violation.
(c) A violation of subsection a. or b. of this section shall, per se, constitute a violation of section 3 of P.L.1970, c.73 (C.56:9-3) and be subject to the penalty provisions provided in the "New Jersey Antitrust Act," P.L.1970, c.73 (C.56:9-1 et seq.).
Section 1 is the bill's operative core, establishing two categorical prohibitions: one targeting the supply side (selling, licensing, or providing algorithmic rent-setting devices to landlords) and one targeting the demand side (landlords using such devices to set rents or occupancy rates). The supply-side prohibition applies to any person — not only developers or vendors — who makes an algorithmic device available to a landlord. The demand-side prohibition specifies a per-unit, per-month violation structure, meaning a landlord using such software across a portfolio faces multiplicative liability.
Both prohibitions are enforced as per se violations of the New Jersey Antitrust Act, meaning no additional showing of anticompetitive effect or market harm is required beyond proof that the device was sold or used. This is a notably aggressive enforcement posture — typical antitrust claims require rule-of-reason analysis.
(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, including artificial intelligence, 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) (as amended by Section 2)" 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) (as amended by Section 2) 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, including artificial intelligence, 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) (as amended by Section 2)" 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, including artificial intelligence, 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) (as amended by Section 2), including artificial intelligence, 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) (as amended by Section 2)" 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 to add two new defined terms — algorithmic device and non-public competitor data — that serve as the operative scope limiters for the prohibitions in Section 1. The algorithmic device definition is carefully drawn to exclude aggregated trade-association reports and affordable-housing compliance tools, meaning landlords may still use publicly available market data and government-program software. The non-public competitor data definition is broadly inclusive, covering anonymized data and data derived from or provided by competitors.
This act shall take effect on the first day of the second month next following enactment.
Section 3 provides that the act takes effect on the first day of the second month following enactment. Because the bill has not been enacted, no specific effective date can be determined at this time.