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.
(A) For purposes of this section: "Algorithmic deviceAlgorithmic device"Algorithmic device" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic device" includes a product that incorporates an algorithmic device but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision.Va. Code § 55.1-1204.2(A)" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic deviceAlgorithmic device"Algorithmic device" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic device" includes a product that incorporates an algorithmic device but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision.Va. Code § 55.1-1204.2(A)" includes a product that incorporates an algorithmic deviceAlgorithmic device"Algorithmic device" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic device" includes a product that incorporates an algorithmic device but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision.Va. Code § 55.1-1204.2(A) but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision. "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data is attributable to a specific competitor or anonymized, and regardless of whether the data is derived from or otherwise provided by another person that competes in the same market or a related market.Va. Code § 55.1-1204.2(A)" means information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data is attributable to a specific competitor or anonymized, and regardless of whether the data is derived from or otherwise provided by another person that competes in the same market or a related market.
Subsection A establishes two key definitions that govern the bill's scope. Algorithmic device — commonly known as revenue management software — is defined as any device using algorithms to process nonpublic competitor data on rents or occupancy levels to advise landlords on vacancy decisions or achievable rent. The definition is broad enough to capture products that merely incorporate such a device, but it carves out aggregate rental data reports that do not recommend future rents and tools used to establish affordable housing program rent or income limits.
Nonpublic competitor data is defined expansively to include any non-publicly-available information about actual rent prices, occupancy rates, lease dates, and similar data — regardless of whether the data is anonymized or attributable to a specific competitor, and regardless of whether it originates from a direct or related-market competitor.
(B) 1 It shall be unlawful to sell, license, or otherwise provide to landlords any algorithmic deviceAlgorithmic device"Algorithmic device" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic device" includes a product that incorporates an algorithmic device but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision.Va. Code § 55.1-1204.2(A) that uses nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" means information that is not available to the general public, including information about actual rent prices, occupancy rates, lease start and end dates, and similar data, regardless of whether the data is attributable to a specific competitor or anonymized, and regardless of whether the data is derived from or otherwise provided by another person that competes in the same market or a related market.Va. Code § 55.1-1204.2(A) for the purpose of setting, recommending, or advising landlords on rents or occupancy levels that may be achieved for residential dwelling units.
Subsection B prohibits the supply side of algorithmic rent-setting: it is unlawful to sell, license, or otherwise provide to landlords any algorithmic device that uses nonpublic competitor data for the purpose of setting, recommending, or advising landlords on rents or occupancy levels for residential dwelling units. This targets software vendors and intermediaries that develop or distribute revenue management tools to the residential rental market.
(C) 2 It shall be unlawful for a landlord to use an algorithmic deviceAlgorithmic device"Algorithmic device" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic device" includes a product that incorporates an algorithmic device but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision.Va. Code § 55.1-1204.2(A) described in subsection B when setting rents or occupancy levels for residential dwelling units. Each separate month that a violation exists or continues, and each separate residential dwelling unit for which the landlord used the algorithmic deviceAlgorithmic device"Algorithmic device" means a device, commonly known as revenue management software, that uses one or more algorithms to perform calculations of non-public competitor data concerning local or statewide rent amounts or occupancy levels for the purpose of advising a landlord on whether to leave a unit vacant or on the amount of rent that the landlord may obtain for that unit. "Algorithmic device" includes a product that incorporates an algorithmic device but does not include (i) any report that publishes existing rental data in an aggregate manner but does not recommend rents or occupancy levels for future leases or (ii) 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 Commonwealth, the federal government, or other political subdivision.Va. Code § 55.1-1204.2(A), shall constitute a separate and distinct violation.
Subsection C addresses the demand side: it is independently unlawful for a landlord to use an algorithmic device described in subsection B when setting rents or occupancy levels for residential dwelling units. Each separate month that a violation exists or continues and each separate residential dwelling unit for which the device was used constitutes a separate and distinct violation — creating significant penalty exposure for landlords with large portfolios or sustained use.
(D)(1) The Attorney General may cause an action to be brought in the name of the Commonwealth to enjoin any violation of this section by any person and to recover a civil penalty in the amount of not less than $1,000 nor more than $5,000 for each such violation. Civil penalties paid pursuant to this section shall be deposited into the Literary Fund.
(D)(2) In an action brought under this section, the Attorney General may recover damages and such other relief allowed by law, including restitution on behalf of tenants injured by violations of this section.
(D)(3) In an action brought under this section, the Attorney General may recover reasonable expenses incurred in investigating and preparing the case and attorney fees.
(D)(4) Whenever the Attorney General has reasonable cause to believe that any person has engaged in, is engaging in, or is about to engage in any violation of this section, the Attorney General is empowered to issue a civil investigative demand. The provisions of § 59.1-9.10 shall apply, mutatis mutandis, to civil investigative demands issued pursuant to this section.
(D)(5) Nothing in this section shall be construed as affecting any private cause of action that may exist under any law of the Commonwealth.
Subsection D establishes the enforcement mechanism. The Attorney General may bring an action to enjoin violations and recover civil penalties of $1,000 to $5,000 per violation. The Attorney General may also recover damages, restitution on behalf of injured tenants, reasonable investigation expenses, and attorney fees. The Attorney General is empowered to issue civil investigative demands under the same procedure as Va. Code § 59.1-9.10 (the Virginia Antitrust Act civil investigative demand provision). A savings clause preserves any private cause of action that may independently exist under other Virginia law.