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.
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 devices used by landlords have been the subject of lawsuits alleging anticompetitive conduct, price-fixing, and collusion resulting in higher rents for residential tenants. The legislature declares that pricing decisions should always be made by the landlord, not outsourced to algorithmic tools, and that the use of such devices to set residential rent is prohibited with certain exceptions.
(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 use, employ, rely upon, or cause another person to use an algorithmic device that incorporates nonpublic competitor data when setting or adjusting residential rent. The prohibition covers both initial rent-setting and renewal rent changes. The scope is narrowed by the defined terms — only algorithmic devices that use, incorporate, or were trained with nonpublic competitor data are covered, meaning tools relying solely on publicly available information fall outside the prohibition.
(2) 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 designates a violation of the algorithmic rent-setting prohibition as a deceptive act or practice under N.Y. Gen. Bus. Law § 349 and subjects violators to all penalties and remedies under Article 22-A of the General Business Law. This incorporates both Attorney General enforcement authority and the existing private right of action available under § 349(h), without creating a new standalone enforcement mechanism.
(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 three key terms: algorithmic device, nonpublic competitor data, and rent. The definition of algorithmic device is notable for its two carve-outs — periodic aggregated trade-association reports and affordable housing program tools — which narrow the prohibition's scope. The definition of nonpublic competitor data is broadly drafted, encompassing anonymized data as well as identifiable data, and covering information from competitors in the same market or a related market.
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 the effective date. Pre-existing rental agreements are not affected, even if the landlord used an algorithmic device to set rent under those agreements.