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.
Legislative declaration. The legislature finds that the use of algorithmic devicesAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (i) includes a product that incorporates an algorithmic device; and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.Real Prop. Law § 222-a(3)(a) has been the subject of lawsuits that allege such products pose a heightened risk of anticompetitive conduct, price fixing, and collusion, all of which allegedly result in higher rentsRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) for residential tenants, and allegedly poses the risk that landlords will outsource pricing decisions, which the legislature determines should always be made by the landlord. Therefore, the legislature declares that, with certain exceptions, the use of an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (i) includes a product that incorporates an algorithmic device; and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.Real Prop. Law § 222-a(3)(a) by a landlord to set the amount of a residential tenant's rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) is prohibited.
Section 1 sets out the legislature's findings motivating the bill: algorithmic pricing tools have been the subject of lawsuits alleging anticompetitive conduct, price fixing, and collusion resulting in higher residential rents. The legislature expresses a policy determination that rent-setting decisions should always be made by landlords themselves rather than outsourced to algorithmic products. This section creates no independent compliance obligation.
(1) 1 In setting the amount of rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) to be charged to a tenant for the occupancy of a residential premises, including determining any change in the amount of rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) to be charged for the renewed occupancy of a residential premises, a landlord shall not employ, use, or rely upon, or cause another person to employ, use, or rely upon, an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (i) includes a product that incorporates an algorithmic device; and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.Real Prop. Law § 222-a(3)(a) that uses, incorporates, or was trained with nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means 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 the data are attributable to a specific competitor or anonymized, and that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market.Real Prop. Law § 222-a(3)(b).
This subdivision contains the bill's core prohibition: landlords may not employ, use, rely upon, or cause another person to employ, use, or rely upon an algorithmic device that uses, incorporates, or was trained with nonpublic competitor data when setting or adjusting residential rent. The prohibition covers both initial rent-setting and rent changes upon lease renewal. Critically, the prohibition extends to indirect use — a landlord cannot circumvent the rule by having a property manager or consultant use the tool on the landlord's behalf.
(2) A violation of subdivision one of this section is a deceptive act or practice as provided in section three hundred forty-nine of the general business law, and a person who commits a violation is subject to all penalties and remedies described in article twenty-two-A of the general business law.
This subdivision classifies any violation of the algorithmic rent-setting prohibition as a deceptive act or practice under GBL § 349, incorporating all penalties and remedies available under Article 22-A of the General Business Law. This gives the Attorney General enforcement authority and creates a private right of action for injured tenants. The provision creates no independent compliance obligation beyond the underlying prohibition in subdivision 1.
(3)(a) "Algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (i) includes a product that incorporates an algorithmic device; and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.Real Prop. Law § 222-a(3)(a)" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) that the landlord may consider charging a tenant. "Algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (i) includes a product that incorporates an algorithmic device; and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.Real Prop. Law § 222-a(3)(a)": (i) includes a product that incorporates an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. "Algorithmic device": (i) includes a product that incorporates an algorithmic device; and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.Real Prop. Law § 222-a(3)(a); and (ii) does not include: (A) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (B) a product used for the purpose of establishing rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) or income limits in accordance with the affordable housing program guidelines of a local government, the state, the federal government, or other political subdivision.
(3)(b) "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means 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 the data are attributable to a specific competitor or anonymized, and that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market.Real Prop. Law § 222-a(3)(b)" means information that is not widely available or easily accessible to the public, including information about actual rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data are attributable to a specific competitor or anonymized, and that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market.
(3)(c) "RentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c)" means the total amount of rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c), including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.
This subdivision defines the three key terms used in the bill: algorithmic device, nonpublic competitor data, and rent. The definition of algorithmic device is notable for its breadth — any device using algorithms to calculate data for the purpose of advising landlords on rent — and its two carve-outs: periodically published aggregated trade association reports and products used solely for affordable housing program compliance. The definition of nonpublic competitor data encompasses competitively sensitive information regardless of whether it is attributable to a specific competitor or anonymized.
This act shall take effect on the ninetieth day after it shall have become a law and shall apply to a landlord's calculation of the amount of rentRent"Rent" means the total amount of rent, including concessions and fees, that a residential tenant is required to pay pursuant to a rental agreement.Real Prop. Law § 222-a(3)(c) that the landlord charges for the occupancy of a residential premises pursuant 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 that effective date. This means existing leases in effect at the time of enactment are not retroactively covered, but any renewal agreement executed after the effective date would be subject to the prohibition.