WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
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)(a) "Pricing algorithmPricing algorithm"Pricing algorithm" shall mean any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting interstate or foreign commerce.Gen. Bus. Law § 344(1)(a)" shall mean any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting interstate or foreign commerce.
(1)(b) "CoordinatorCoordinator"Coordinator" shall mean any operator of a software or data analytics service that performs a coordinating function for any landlord, including a landlord performing a coordinating function for such landlord's own benefit.Gen. Bus. Law § 344(1)(b)" shall mean any operator of a software or data analytics service that performs a coordinating function for any landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344, including a landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 performing a coordinating function for such landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344's own benefit.
(1)(c) "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data": (i) shall mean 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; and (ii) 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.Gen. Bus. Law § 344(1)(c)": (i) shall mean nonpublic dataNonpublic data"Nonpublic data" shall mean information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether such data is attributable to a specific competitor or anonymized.Gen. Bus. Law § 344(1)(d) that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market; and (ii) 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.
(1)(d) "Nonpublic dataNonpublic data"Nonpublic data" shall mean information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether such data is attributable to a specific competitor or anonymized.Gen. Bus. Law § 344(1)(d)" shall mean information that is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether such data is attributable to a specific competitor or anonymized.
Subdivision 1 establishes the four defined terms that frame the bill's prohibitions: pricing algorithm (any computational process, including AI-derived, that recommends or sets a price or commercial term in interstate or foreign commerce), coordinator (the operator of a software or data analytics service performing a coordinating function for landlords), nonpublic competitor data (nonpublic data derived from or provided by a market competitor, excluding narrative reports and generalized surveys), and nonpublic data (information not widely available or easily accessible to the public, including rent prices, occupancy rates, and lease dates regardless of anonymization). These definitions are notably broad — 'pricing algorithm' sweeps in any computational pricing tool used in commerce, not only AI-specific systems, and 'nonpublic data' covers anonymized datasets.
(2)(a) 1 In setting the amount of rent to be charged to a tenant for the occupancy of a residential premises, including determining any change in the amount of rent to be charged for the renewed occupancy of a residential premises, a landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 shall not employ, use, or rely upon, or cause another person to employ, use, or rely upon, an algorithmic pricing that uses, incorporates, or was trained with nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data": (i) shall mean 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; and (ii) 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.Gen. Bus. Law § 344(1)(c).
(2)(b) 2 A coordinatorCoordinator"Coordinator" shall mean any operator of a software or data analytics service that performs a coordinating function for any landlord, including a landlord performing a coordinating function for such landlord's own benefit.Gen. Bus. Law § 344(1)(b) shall not facilitate an agreement among landlordsLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 to not compete regarding the renting of residential premises.
Subdivision 2 contains the bill's two core prohibitions. Paragraph (a) prohibits landlords from using, relying upon, or causing another person to use a pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data when setting or renewing residential rent. The prohibition extends to indirect use — a landlord cannot circumvent the rule by contracting with a third party to run the algorithm. Paragraph (b) independently prohibits coordinators from facilitating anti-competitive agreements among landlords regarding residential premises. Together, these provisions target the full supply chain of algorithmic rent-coordination services, from the software operator to the landlord end-user.
(3)(a) 3 A landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 shall not share a tenant's personal data with any third party without such tenant's written consent.
(3)(b) 4 A landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 shall disclose to each tenant: (i) the categories of personal data processed by the landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 and by any processor who processes personal data on behalf of such landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344; (ii) the sources from which personal data is collected; (iii) the purposes for processing personal data; (iv) the landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344's retention period for each category of personal data that such landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 processes or which is processed on such landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344's behalf, or if that is not possible, the criteria used to determine such retention period; and (v) the identity of each third party to whom the landlordLandlordNot separately defined in this section; used throughout to refer to a person who rents or leases residential premises to a tenant.Gen. Bus. Law § 344 disclosed, shared, transferred, or sold personal data, and for each identified third party: (A) the categories of personal data being shared, disclosed, transferred, or sold to the third party; (B) the purposes for which personal data is being shared, disclosed, transferred, or sold to the third party; (C) the third party's retention period for each category of personal data processed by such third party or processed on such third party's behalf, or if that is not possible, the criteria used to determine such retention period; and (D) whether the third party uses the personal data for targeted advertising.
Subdivision 3 imposes two distinct personal-data obligations on landlords. Paragraph (a) requires written tenant consent before sharing personal data with any third party — a categorical consent requirement with no enumerated exceptions. Paragraph (b) mandates a detailed disclosure to each tenant covering five categories of information: the categories of personal data processed (by the landlord and its processors), collection sources, processing purposes, retention periods (or criteria for determining them), and the identity and practices of each third-party data recipient — including data categories shared, sharing purposes, the third party's retention periods, and whether the third party uses the data for targeted advertising. This disclosure framework is structurally similar to state comprehensive privacy laws but is sector-specific to the landlord-tenant relationship.
(4) In addition to any action brought by the attorney general under this article, a tenant injured by a violation of this section may bring an action to recover damages. A court may also award attorneys' fees to a prevailing plaintiff tenant.
Subdivision 4 establishes a dual enforcement mechanism. The attorney general may bring actions under the General Business Law, and tenants injured by a violation have a private right of action to recover damages. The court has discretion to award attorneys' fees to a prevailing plaintiff tenant. The provision does not specify statutory damages, suggesting that recovery requires proof of actual injury.
This act shall take effect on the ninetieth day after it shall have become a law and shall apply to any rental agreement that is executed on or after the effective date of this act.
The act takes effect on the ninetieth day after it becomes law and applies only to rental agreements executed on or after the effective date. Existing rental agreements are not retroactively covered.