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)–(i) As used in this section: (a) "Consciously parallel pricing coordinationConsciously parallel pricing coordination"Consciously parallel pricing coordination" means a tacit agreement between two or more rental property owners to raise, lower, change, maintain, or manipulate pricing for the purchase or sale of reasonably interchangeable products or services.Real Property Law § 222-a(1)(a)" means a tacit agreement between two or more rental property ownersRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i) to raise, lower, change, maintain, or manipulate pricing for the purchase or sale of reasonably interchangeable products or services. (b) "Coordinating functionCoordinating function"Coordinating function" means: (i) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (ii) analyzing or processing of the information described in subparagraph (i) of this paragraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and (iii) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Real Property Law § 222-a(1)(b)" means: (i) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence; provided that "residential dwelling unit" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.Real Property Law § 222-a(1)(h) from two or more rental property ownersRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i); (ii) analyzing or processing of the information described in subparagraph (i) of this paragraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and (iii) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property ownerRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i). (c) "CoordinatorCoordinator"Coordinator" means any person that operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Real Property Law § 222-a(1)(c)" means any personPerson"Person" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "person" shall not include the state or any state agency.Real Property Law § 222-a(1)(e) that operates a software or data analytics service that performs a coordinating functionCoordinating function"Coordinating function" means: (i) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (ii) analyzing or processing of the information described in subparagraph (i) of this paragraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and (iii) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Real Property Law § 222-a(1)(b) for any rental property ownerRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i), including a rental property ownerRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i) performing a coordinating functionCoordinating function"Coordinating function" means: (i) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (ii) analyzing or processing of the information described in subparagraph (i) of this paragraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and (iii) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Real Property Law § 222-a(1)(b) for their own benefit. (d) "DivisionDivision"Division" means the division of housing and community renewal.Real Property Law § 222-a(1)(d)" means the division of housing and community renewal. (e) "PersonPerson"Person" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "person" shall not include the state or any state agency.Real Property Law § 222-a(1)(e)" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "personPerson"Person" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "person" shall not include the state or any state agency.Real Property Law § 222-a(1)(e)" shall not include the state or any state agency. (f) "Pre-dispute arbitration agreementPre-dispute arbitration agreement"Pre-dispute arbitration agreement" means an agreement between two or more parties to arbitrate a dispute between the parties that is made before any dispute has arisen.Real Property Law § 222-a(1)(f)" means an agreement between two or more parties to arbitrate a dispute between the parties that is made before any dispute has arisen. (g) "Pre-dispute joint action waiverPre-dispute joint action waiver"Pre-dispute joint action waiver" means an agreement between two or more parties, which may be part of a pre-dispute arbitration agreement, that: (i) would prohibit or waive the right of a party to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum relating to a dispute between two parties; and (ii) is made before any dispute has arisen.Real Property Law § 222-a(1)(g)" means an agreement between two or more parties, which may be part of a pre-dispute arbitration agreementPre-dispute arbitration agreement"Pre-dispute arbitration agreement" means an agreement between two or more parties to arbitrate a dispute between the parties that is made before any dispute has arisen.Real Property Law § 222-a(1)(f), that: (i) would prohibit or waive the right of a party to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum relating to a dispute between two parties; and (ii) is made before any dispute has arisen. (h) "Residential dwelling unitResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence; provided that "residential dwelling unit" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.Real Property Law § 222-a(1)(h)" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence; provided that "residential dwelling unitResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence; provided that "residential dwelling unit" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.Real Property Law § 222-a(1)(h)" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities. (i) "Rental property ownerRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i)" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence; provided that "residential dwelling unit" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.Real Property Law § 222-a(1)(h).
This subsection establishes the definitional framework for the bill. Key terms include coordinating function, which defines the prohibited data-collection-to-recommendation pipeline; coordinator, which identifies the entity operating algorithmic pricing services; and rental property owner, which sets a four-unit minimum threshold for coverage. The definition of coordinating function is notably conjunctive — all three elements (collection from two or more owners, algorithmic processing, and recommendation) must be present to constitute the prohibited conduct.
(2)(a) 1 It is unlawful for: (a) a rental property ownerRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i), in or affecting commerce, or any agent or subcontractor thereof, to subscribe to, contract with, or otherwise exchange anything of value in return for the services of a coordinatorCoordinator"Coordinator" means any person that operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Real Property Law § 222-a(1)(c);
(2)(b) 2 a coordinatorCoordinator"Coordinator" means any person that operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Real Property Law § 222-a(1)(c), in or affecting commerce, to facilitate an agreement among rental property ownersRental property owner"Rental property owner" means any individual, corporation, partnership, association, joint-stock company, trust, or unincorporated organization that owns real property and leases or rents such property or any portion thereof in the form of four or more residential dwelling units.Real Property Law § 222-a(1)(i) to not compete with respect to residential dwelling unitsResidential dwelling unit"Residential dwelling unit" means any house, apartment, accessory unit, or other unit intended to be used as a primary residence; provided that "residential dwelling unit" does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.Real Property Law § 222-a(1)(h), including by performing a coordinating functionCoordinating function"Coordinating function" means: (i) collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more rental property owners; (ii) analyzing or processing of the information described in subparagraph (i) of this paragraph using a system, software, or process that uses computation, including by using that information to train an algorithm; and (iii) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner.Real Property Law § 222-a(1)(b); or
(2)(c) 3 any coordinatorCoordinator"Coordinator" means any person that operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Real Property Law § 222-a(1)(c), in or affecting commerce, to acquire, directly or indirectly, the whole or any part of the stock or other share capital of another coordinatorCoordinator"Coordinator" means any person that operates a software or data analytics service that performs a coordinating function for any rental property owner, including a rental property owner performing a coordinating function for their own benefit.Real Property Law § 222-a(1)(c) if the acquisition would create an appreciable risk of materially lessening competition, or tend to create a monopoly or monopsony, and any such acquisition shall be deemed a violation of this section.
This subsection establishes the bill's three core prohibitions. It is unlawful for rental property owners to contract with or pay for coordinator services, for coordinators to facilitate anticompetitive agreements among rental property owners (including by performing a coordinating function), and for coordinators to acquire other coordinators where the acquisition would create an appreciable risk of materially lessening competition or tending to create a monopoly or monopsony. The rental property owner prohibition targets the demand side; the coordinator prohibition targets the supply side; and the acquisition prohibition addresses market concentration among algorithmic pricing vendors.
(3)(a) In addition to any other action or proceeding authorized by law, the attorney general may bring an action or special proceeding in the supreme court, in the name and on behalf of the people of the state of New York, against a personPerson"Person" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "person" shall not include the state or any state agency.Real Property Law § 222-a(1)(e) violating the provisions of this section to enjoin such personPerson"Person" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "person" shall not include the state or any state agency.Real Property Law § 222-a(1)(e) from continuing the violation or engaging in any acts in furtherance thereof, to compel compliance with the provisions of this section and/or to recover any monetary penalty for such violation. Any such action or proceeding may be compromised or discontinued on application of the department upon such terms as the court shall approve and order.
(3)(b) If the department has reason to believe that a personPerson"Person" means any individual, corporation, partnership, association, trustee, municipality or other legal entity, including corporations and associations existing under or authorized by the laws of either the United States, the laws of any of the territories, the laws of any state, or the laws of any foreign country; provided that "person" shall not include the state or any state agency.Real Property Law § 222-a(1)(e) violated this section, the department may commence a civil action, in its own name by any of its attorneys designated by it for such purpose, to recover a civil penalty and seek other appropriate relief in any court of competent jurisdiction.
(3)(c) All monies recovered in any such action or special proceeding, together with the costs thereof shall be paid into the state treasury to the credit of the general fund.
This subsection establishes the enforcement framework. The Attorney General may bring an action or special proceeding in the Supreme Court to enjoin violations, compel compliance, or recover monetary penalties. The Division of Housing and Community Renewal may independently commence civil actions for civil penalties and other appropriate relief. All monies recovered are deposited into the state treasury general fund. There is no private right of action — enforcement is exclusively governmental.
(4)(a)–(b) In a civil action under this section, a complaint: (a) plausibly pleads a violation of this section and if the complaint contains factual allegations, including allegations of consciously parallel pricing coordinationConsciously parallel pricing coordination"Consciously parallel pricing coordination" means a tacit agreement between two or more rental property owners to raise, lower, change, maintain, or manipulate pricing for the purchase or sale of reasonably interchangeable products or services.Real Property Law § 222-a(1)(a), demonstrating that the existence of a contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and (b) need not allege facts tending to exclude the possibility of independent action.
This subsection establishes a relaxed pleading standard for civil actions brought under the bill, requiring only that a complaint plausibly plead a violation with factual allegations — including allegations of consciously parallel pricing coordination — demonstrating that the existence of a contract, combination, or conspiracy in restraint of trade is among the realm of plausible possibilities. Critically, the complaint need not allege facts tending to exclude the possibility of independent action. This directly addresses the Twombly standard, which normally requires plaintiffs in antitrust conspiracy cases to plead facts excluding lawful parallel conduct.
(5) A pre-dispute arbitration agreementPre-dispute arbitration agreement"Pre-dispute arbitration agreement" means an agreement between two or more parties to arbitrate a dispute between the parties that is made before any dispute has arisen.Real Property Law § 222-a(1)(f) or pre-dispute joint action waiverPre-dispute joint action waiver"Pre-dispute joint action waiver" means an agreement between two or more parties, which may be part of a pre-dispute arbitration agreement, that: (i) would prohibit or waive the right of a party to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum relating to a dispute between two parties; and (ii) is made before any dispute has arisen.Real Property Law § 222-a(1)(g) relating to a violation of this section shall be invalid or unenforceable.
This subsection voids pre-dispute arbitration agreements and pre-dispute joint action waivers as they relate to violations of this section, ensuring that enforcement actions cannot be channeled into arbitration or barred from class or collective proceedings. This provision may face federal preemption scrutiny under the Federal Arbitration Act, though the bill's enforcement structure — which runs entirely through governmental actors — may mitigate that concern.
(6) Nothing in this section shall be construed to preempt any state, tribal, city, or local law, regulation, or ordinance that explicitly supplements this section.
This subsection provides that the bill does not preempt any state, tribal, city, or local law, regulation, or ordinance that explicitly supplements this section. This preserves the ability of local jurisdictions to enact additional or complementary restrictions on algorithmic rental pricing coordination.