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) "Algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data. The term includes a product that incorporates an algorithmic device. The term does not include: (A) a report published periodically and not more frequently than monthly by a trade association that receives and publishes data 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 political subdivision, this state, or the federal government.Bus. & Com. Code § 121.001(1)" means a device that uses one or more algorithms to perform calculations of data. The term 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. The term includes a product that incorporates an algorithmic device. The term does not include: (A) a report published periodically and not more frequently than monthly by a trade association that receives and publishes data 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 political subdivision, this state, or the federal government.Bus. & Com. Code § 121.001(1). The term does not include: (A) a report published periodically and not more frequently than monthly by a trade association that receives and publishes data 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 political subdivision, this state, or the federal government.
(2) "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that: (A) is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, and lease start and end dates, regardless of whether the data is attributable to a specific competitor or anonymized; and (B) is derived from or otherwise provided to a person by another person that competes in the same or a related market.Bus. & Com. Code § 121.001(2)" means information that: (A) is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, and lease start and end dates, regardless of whether the data is attributable to a specific competitor or anonymized; and (B) is derived from or otherwise provided to a person by another person that competes in the same or a related market.
Section 121.001 establishes the two key defined terms for the chapter. Algorithmic device is defined broadly — any device using algorithms to perform data calculations, including products incorporating such a device — but with two important carve-outs: periodic aggregated trade-association reports and products used solely for affordable housing program rent/income limits. Nonpublic competitor data captures non-public information (including actual rent prices, occupancy rates, and lease dates) derived from or provided by a market competitor, regardless of anonymization. This definition is the linchpin of the prohibition in § 121.003(b), targeting the kind of proprietary competitor data pooling at the center of RealPage-style pricing tool concerns.
(a)–(b) This chapter does not apply to an algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data. The term includes a product that incorporates an algorithmic device. The term does not include: (A) a report published periodically and not more frequently than monthly by a trade association that receives and publishes data 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 political subdivision, this state, or the federal government.Bus. & Com. Code § 121.001(1) that uses, incorporates, or was trained with nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that: (A) is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, and lease start and end dates, regardless of whether the data is attributable to a specific competitor or anonymized; and (B) is derived from or otherwise provided to a person by another person that competes in the same or a related market.Bus. & Com. Code § 121.001(2) if the data includes nonpublic executed lease data that is also made available to the public in an aggregated and anonymous manner at no more than a reasonable charge. (b) For purposes of this section, data made available to the public in an aggregated and anonymous manner includes nonpublic executed lease data tailored for the benefit of and usefulness to consumers and presented as a range of average rent prices for properties in a geographic area defined by its zip code, neighborhood, geographical radius, or other type of apartment industry submarket.
Section 121.002 creates a safe harbor from the chapter's prohibitions. An algorithmic device that uses nonpublic competitor data is exempt if that data includes nonpublic executed lease data that is also made available to the public in aggregated, anonymous form at no more than a reasonable charge. Subsection (b) clarifies what qualifies as aggregated and anonymous public availability: data tailored for consumers and presented as a range of average rent prices by geographic area (zip code, neighborhood, radius, or apartment industry submarket). This safe harbor effectively rewards transparency — an algorithmic pricing tool provider that shares its underlying lease data publicly in consumer-friendly form may continue to use that data in its algorithmic calculations.
(a) 1 The sale of algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data. The term includes a product that incorporates an algorithmic device. The term does not include: (A) a report published periodically and not more frequently than monthly by a trade association that receives and publishes data 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 political subdivision, this state, or the federal government.Bus. & Com. Code § 121.001(1) services or products for the purpose of setting or recommending the amount of rent to be charged to a tenant for residential premises is prohibited.
(b) 2 A person engaged in the business of providing algorithmic deviceAlgorithmic device"Algorithmic device" means a device that uses one or more algorithms to perform calculations of data. The term includes a product that incorporates an algorithmic device. The term does not include: (A) a report published periodically and not more frequently than monthly by a trade association that receives and publishes data 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 political subdivision, this state, or the federal government.Bus. & Com. Code § 121.001(1) services or products for the purpose of advising a landlord of the amount of rent that the landlord may consider charging a tenant for residential premises may not use nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that: (A) is not widely available or easily accessible to the public, including information about actual rent prices, occupancy rates, and lease start and end dates, regardless of whether the data is attributable to a specific competitor or anonymized; and (B) is derived from or otherwise provided to a person by another person that competes in the same or a related market.Bus. & Com. Code § 121.001(2) pertaining to residential properties in this state in algorithmic calculations.
Section 121.003 contains the bill's two operative prohibitions. Subsection (a) is the broadest: it flatly prohibits the sale of algorithmic device services or products for the purpose of setting or recommending the amount of rent charged to a tenant for residential premises. This is a categorical ban — no safe harbor, no compliance pathway — that effectively outlaws RealPage-style rent-setting tools in Texas. Subsection (b) addresses a narrower category: algorithmic device services or products used for advising a landlord of rent amounts the landlord may consider charging. This advisory use is not banned outright, but the provider may not use nonpublic competitor data pertaining to Texas residential properties in those algorithmic calculations. The distinction between "setting or recommending" (banned) and "advising" (restricted) is the critical line the bill draws.
3 A violation of Section 121.003 is a deceptive trade practice actionable under Subchapter E, Chapter 17.
Section 121.004 establishes the enforcement mechanism by classifying any violation of § 121.003 as a deceptive trade practice actionable under Subchapter E, Chapter 17 of the Texas Business & Commerce Code — the Texas Deceptive Trade Practices–Consumer Protection Act (DTPA). This gives the Texas Attorney General's Consumer Protection Division enforcement authority and also provides a private right of action for consumers under the DTPA's existing framework, with remedies including economic damages, treble damages for knowing or intentional violations, injunctive relief, and attorney's fees.