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.
(a)(1)–(5) As used in this section: (1) "AlgorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Tenn. Code Ann. § 47-25-1xx(a)(1)" means a computational process that uses a set of rules to define a sequence of operations; (2) "Algorithmic deviceAlgorithmic device"Algorithmic device" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating function.Tenn. Code Ann. § 47-25-1xx(a)(2)" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating functionCoordinating function"Coordinating function": (A) Means performing all of the following subfunctions: (i) Collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two (2) or more residential rental property owners or managers; provided, that at least two (2) such residential rental property owners or managers are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; (ii) Analyzing or processing the information described in subdivision (a)(3)(A)(i) 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, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager; and (B) Does not include a product used for the purpose of establishing rent or income limits in accordance with an affordable housing program administered by a federal, state, or local government or other political subdivision.Tenn. Code Ann. § 47-25-1xx(a)(3); (3) "Coordinating functionCoordinating function"Coordinating function": (A) Means performing all of the following subfunctions: (i) Collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two (2) or more residential rental property owners or managers; provided, that at least two (2) such residential rental property owners or managers are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; (ii) Analyzing or processing the information described in subdivision (a)(3)(A)(i) 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, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager; and (B) Does not include a product used for the purpose of establishing rent or income limits in accordance with an affordable housing program administered by a federal, state, or local government or other political subdivision.Tenn. Code Ann. § 47-25-1xx(a)(3)": (A) Means performing all of the following subfunctions: (i) Collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two (2) or more residential rental property owners or managers; provided, that at least two (2) such residential rental property owners or managers are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or managerResidential rental property owner or manager"Residential rental property owner or manager" means an individual or entity that owns or is a beneficial owner of, directly or indirectly, in whole or in part, or manages one (1) or more residential rental dwelling units in this state.Tenn. Code Ann. § 47-25-1xx(a)(5); (ii) Analyzing or processing the information described in subdivision (a)(3)(A)(i) using a system, software, or process that uses computation, including by using that information to train an algorithmAlgorithm"Algorithm" means a computational process that uses a set of rules to define a sequence of operations.Tenn. Code Ann. § 47-25-1xx(a)(1); and (iii) Recommending rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or managerResidential rental property owner or manager"Residential rental property owner or manager" means an individual or entity that owns or is a beneficial owner of, directly or indirectly, in whole or in part, or manages one (1) or more residential rental dwelling units in this state.Tenn. Code Ann. § 47-25-1xx(a)(5); and (B) Does not include a product used for the purpose of establishing rent or income limits in accordance with an affordable housing program administered by a federal, state, or local government or other political subdivision; (4) "PersonPerson"Person" means a natural person or a legal entity.Tenn. Code Ann. § 47-25-1xx(a)(4)" means a natural personPerson"Person" means a natural person or a legal entity.Tenn. Code Ann. § 47-25-1xx(a)(4) or a legal entity; and (5) "Residential rental property owner or managerResidential rental property owner or manager"Residential rental property owner or manager" means an individual or entity that owns or is a beneficial owner of, directly or indirectly, in whole or in part, or manages one (1) or more residential rental dwelling units in this state.Tenn. Code Ann. § 47-25-1xx(a)(5)" means an individual or entity that owns or is a beneficial owner of, directly or indirectly, in whole or in part, or manages one (1) or more residential rental dwelling units in this state.
This subsection establishes the definitional framework for the Stop Rent Rigging Act. The key construct is the coordinating function, which requires all three elements — data collection from competing landlords, computational analysis or processing (including algorithm training), and price or lease-term recommendations back to those landlords — before a product triggers the prohibition. The definition expressly carves out products used to set rent or income limits under government-administered affordable housing programs.
(b) 1 It is an unlawful restraint of trade or commerce for a personPerson"Person" means a natural person or a legal entity.Tenn. Code Ann. § 47-25-1xx(a)(4) to knowingly or recklessly facilitate an agreement between or among two (2) or more residential rental property owners or managers to not compete with respect to residential rental dwelling units, including by operating or licensing a software, data analytics service, or algorithmic deviceAlgorithmic device"Algorithmic device" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating function.Tenn. Code Ann. § 47-25-1xx(a)(2) that performs a coordinating functionCoordinating function"Coordinating function": (A) Means performing all of the following subfunctions: (i) Collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two (2) or more residential rental property owners or managers; provided, that at least two (2) such residential rental property owners or managers are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; (ii) Analyzing or processing the information described in subdivision (a)(3)(A)(i) 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, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager; and (B) Does not include a product used for the purpose of establishing rent or income limits in accordance with an affordable housing program administered by a federal, state, or local government or other political subdivision.Tenn. Code Ann. § 47-25-1xx(a)(3) on behalf of or between and among such residential rental property owners or managers.
This subsection prohibits any person from knowingly or recklessly facilitating an agreement among competing residential rental property owners or managers not to compete, including by operating or licensing software, data analytics services, or algorithmic devices that perform a coordinating function on behalf of or between such owners or managers. The prohibition targets the providers of algorithmic pricing tools — the entity that builds, operates, or licenses the coordinating platform — rather than the landlords who use it (who are addressed separately in subsection (c)).
(c) 2 It is an unlawful restraint of trade or commerce for a residential rental property owner or managerResidential rental property owner or manager"Residential rental property owner or manager" means an individual or entity that owns or is a beneficial owner of, directly or indirectly, in whole or in part, or manages one (1) or more residential rental dwelling units in this state.Tenn. Code Ann. § 47-25-1xx(a)(5) to knowingly or recklessly set or adjust rental prices, lease renewal terms, occupancy levels, or other lease terms and conditions in one (1) or more of the owner's or manager's residential rental properties based on recommendations from a software, data analytics service, or algorithmic deviceAlgorithmic device"Algorithmic device" means any machine, device, computer program, or computer software that on its own or with human assistance performs a coordinating function.Tenn. Code Ann. § 47-25-1xx(a)(2) performing a coordinating functionCoordinating function"Coordinating function": (A) Means performing all of the following subfunctions: (i) Collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two (2) or more residential rental property owners or managers; provided, that at least two (2) such residential rental property owners or managers are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same residential rental property owner or manager; (ii) Analyzing or processing the information described in subdivision (a)(3)(A)(i) 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, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager; and (B) Does not include a product used for the purpose of establishing rent or income limits in accordance with an affordable housing program administered by a federal, state, or local government or other political subdivision.Tenn. Code Ann. § 47-25-1xx(a)(3).
This subsection addresses the demand side of algorithmic rent coordination: residential rental property owners or managers who knowingly or recklessly set or adjust rental prices, lease renewal terms, occupancy levels, or other lease conditions based on recommendations from software, data analytics services, or algorithmic devices performing a coordinating function. While subsection (b) targets the platform operator or licensor, this provision targets the landlord who acts on the algorithmic output.
(d) A violation of subsection (b) or (c) is subject to the same civil and criminal penalties as a violation of § 47-25-101.
This subsection incorporates the existing penalty structure of Tennessee's antitrust statute, Tenn. Code Ann. § 47-25-101, for violations of the algorithmic rent coordination prohibitions in subsections (b) and (c). It does not create new penalty categories but instead subjects violations to the same civil and criminal penalties already available under Tennessee antitrust law.