Prohibits dynamic pricing, algorithm or automated pricing tools in the sale or rental of any residential dwelling unit
This bill would amend New York’s Real Property Law to prohibit the use of dynamic pricing, algorithms, or automated pricing tools in connection with the listing, advertisement, sale, or rental of any residential dwelling unit. It defines “dynamic pricing” broadly to cover automated or algorithmic price changes based on factors such as occupancy, vacancy, competitor pricing, demand indicators, time-on-market, or personal data, while excluding uniform bona fide discounts offered on identical terms to all prospective tenants or buyers.
The bill also addresses online real estate auctions. It would require landlords, brokers, salespersons, and real estate platforms that conduct live auctions to display a plain-language warning that shill bidding is illegal under New York law. In addition, it would bar owners of residential rental units, and entities in which they or certain family members have a direct or indirect ownership interest, from listing or offering rental units through an online real estate auction platform.
If enacted, the bill would create new sections 442-m and 442-n of the Real Property Law and impose new restrictions on landlords, brokers, real estate salespersons, and real estate platforms operating in New York. It would effectively ban algorithmic or automated pricing systems for residential sales and rentals, and it would prohibit certain ownership-linked use of online auction platforms for rental units. The measure would also add disclosure obligations for live auctions and could affect how rental listings, pricing strategies, and auction-based housing transactions are conducted statewide.
The available record suggests the bill was introduced and referred to the Housing Committee without recorded votes or committee debate in the provided materials. Based on the bill’s framing, it appears aimed at consumer protection and limiting potentially manipulative housing market practices, which suggests a generally reform-oriented intent. However, because no transcripts or vote totals are provided, there is no documented public sentiment in the record beyond the bill’s introduction and referral.
The main points of contention likely concern the breadth and enforceability of the ban on algorithmic pricing, including whether it could restrict legitimate pricing software, market analysis tools, or common rental management practices. Another likely issue is the prohibition on online auction platforms where the owner or a family member has an ownership interest, which could raise questions about overbreadth, business model restrictions, and how indirect ownership would be identified. The bill also targets shill bidding, indicating concern about auction manipulation, but no specific opposition or support statements are included in the provided materials.