Prohibits use and sale of algorithmic devices for setting rent price or occupancy of residential dwelling units.
Impact
If enacted, A4916 would amend New Jersey's existing laws to explicitly outlaw the deployment of algorithmic devices for residential rent pricing. This move is designed to protect tenants from the adverse effects of corporate practices that result in rising rents and increased eviction rates. Each month of non-compliance by any landlord would be considered a separate violation, with penalties including civil actions and financial repercussions for violations. The bill also empowers the Attorney General to pursue compensatory measures for damages and restitution for unlawful profit.
Summary
Assembly Bill A4916 aims to prohibit the use and sale of algorithmic devices that assist landlords in setting rent prices or occupancy rates for residential dwelling units in New Jersey. The legislation responds to growing concerns about how such technologies can manipulate housing markets, leading to artificially inflated rents and higher vacancy rates. In recent years, many landlords have been relying on these algorithmic tools, which utilize sensitive non-public data, to make pricing decisions, thereby threatening the stability of rental housing markets both locally and nationwide.
Contention
The bill addresses significant issues surrounding competitive practices in real estate, particularly focusing on large corporate landlords who may use these algorithms to coordinate pricing strategies unlawfully. Critics of algorithmic pricing point out that it fosters a market environment where data sharing among landlords can lead to unlawful price-fixing. The introduction of A4916 is a response to various antitrust lawsuits initiated against companies supplying these algorithmic tools, like RealPage, Inc. and Yardi Systems, suggesting a growing political and legal consensus about the negative impact of such technologies on housing affordability.
Additional_notes
While A4916 seeks to curb the use of algorithmic pricing, it does not restrict the collection or use of data that is publicly available or internal to a landlord's operations. This limitation is critical, as it balances the need for tenant protections with the operational needs of landlords who utilize legitimate management tools.
Amends the residential landlord and tenant act to prohibit the use of algorithmic renting-setting software that relies on nonpublic competitor data to determine rental prices or occupancy levels for residential dwelling units in Rhode Island.
An act to add Chapter 8 (commencing with Section 17370) to Part 2 of Division 7 of the Business and Professions Code, relating to business regulations.