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 creates two independent prohibitions. The first bars any person from selling, licensing, or otherwise providing to a landlord an algorithmic device that sets, recommends, or advises on rents or occupancy rates for residential dwelling units. The second bars landlords from using such devices. Each prohibition is independently actionable — a vendor violates by selling the tool; a landlord violates by using it — and they may be enforced together or separately.
The enforcement mechanism is an Attorney General civil action that may seek damages, injunctive relief, restitution, return of illegal profits, and civil penalties of up to $1,000 per violation. Notably, each month of continued use and each dwelling unit affected counts as a separate violation, creating the potential for substantial cumulative penalties against large landlords. Attorney's fees are mandatory for the prevailing Attorney General.
(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 (C.56:9-2) to add two new defined terms: algorithmic device and non-public competitor data. The definition of algorithmic device is carefully scoped — it covers software that processes non-public competitor data on rents or occupancy rates to advise landlords, but expressly excludes aggregated anonymous trade association reports and affordable housing program compliance tools. The definition of non-public competitor data is broad, capturing all information not available to the general public about actual rent prices, occupancy rates, lease dates, and related data, regardless of anonymization or attribution.
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. This creates a brief implementation window for vendors and landlords currently using covered algorithmic tools to cease use before the prohibition becomes operative.