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.
Section 1. 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.
This section sets out the legislature's findings motivating the bill. It identifies the risk of anticompetitive conduct, price fixing, and collusion arising from landlords' use of algorithmic pricing devices, and the risk that landlords will outsource pricing decisions the legislature believes should always be made by the landlord. No operative obligation is imposed.
(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 is the bill's core operative provision. It prohibits landlords from employing, using, or relying upon an algorithmic device that uses, incorporates, or was trained with nonpublic competitor data when setting or adjusting residential rent. The prohibition extends to causing another person to use such a device on the landlord's behalf, foreclosing evasion through third-party services. The scope is limited to algorithmic devices fed nonpublic competitor data — a landlord's use of an algorithm trained exclusively on publicly available data or the landlord's own internal data is not reached.
(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 GBL § 349, incorporating by reference the full enforcement apparatus of GBL Article 22-A. This includes Attorney General enforcement with injunctive relief and civil penalties, as well as a private right of action for any person injured by the deceptive practice. The cross-reference to Article 22-A is the bill's sole enforcement mechanism — the bill does not create an independent penalty schedule or a standalone private cause of action.
(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 prohibition: algorithmic device, nonpublic competitor data, and rent. The definition of algorithmic device is notable for its breadth — it covers any tool using algorithms to process data for the purpose of advising a landlord on rent — and for its two carve-outs: aggregated trade association reports published no more than monthly, and products used solely for affordable housing program rent limits. The definition of nonpublic competitor data captures information derived from or provided by a market competitor regardless of whether the data is 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 90 days after becoming law and applies only to rental agreements executed on or after the effective date. Existing rental agreements are not affected, and rent calculations made before the effective date are not retroactively prohibited.