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Item 24 - Councilmember Requested Item to Prepare an Ordinance Prohibiting the Use of Algorithmic Pricing Tools
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Item 24 - Councilmember Requested Item to Prepare an Ordinance Prohibiting the Use of Algorithmic Pricing Tools
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Agenda Packet
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City Council
Item #
24
Date
10/7/2025
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1 only at the use of#algorithmic devices that analyze and share non-public data, to prevent <br /> 2 the harms described above. <br /> 3 <br /> 4 Section 2. Chapter 37 of the Administrative Code is hereby amended by adding <br /> 5 Section 37.10C, to read as follows: <br /> 6 SEC. 37.10C. USE AND SALE OFALGORITHMIC DEVICES PROHIBITED. <br /> 7 (a) Prohibition on Sale. It shall be unlawful to sell, license, or otherwise provide to San <br /> 8 Francisco landlords any algorithmic device that sets, recommends, or advises on rents or occupancy <br /> g levels that may be achieved for residential dwelling units in.San Francisco. <br /> 10 (b) Prohibition on Use. It shall be unlawful for a landlord to use an algorithmic device <br /> 11 described in subdivision (a) when setting rents or occupancy levels for residential dwelling units in San <br /> 12 Francisco. Each separate month that a violation exists or continues, and each separate residential <br /> 13 dwelling unit for which the landlord used the algorithmic device, shall constitute a separate and <br /> 14 distinct violation. <br /> 15 (c) Definitions. <br /> 16 (1) "Algorithmic device"means a device SUGh-as a commonly known as <br /> 17 revenue management software pr9g;a4:n,that uses one or more algorithms to perform calculations <br /> 18 of non-public competitor data concerning local or statewide rents or occupancy levels, for the purpose <br /> 19 of advising a landlord on whether to leave }hhe4-a unit vacant or on the amount of rent that the <br /> 20 landlord may obtain for that unitfrom a tenant "Algorithmic device" includes a product that <br /> 21 incorporates an algorithmic device, but does not include (A) any report that publishesd by a ade <br /> 22 ;a66s tiG_A that rcGerve6re-rn't but <br /> 23 does not recommend rents or occupancy levels for future leases: or (B) a product used for the <br /> 24 purpose of establishing rent or income limits in accordance with the affordable housing program <br /> 25 guidelines of a local government, the state, the federal government, or other political subdivision. <br /> Supervisors Peskin; Chan, Preston, Melgar, Ronen, Dorsey <br /> BOARD OF SUPERVISORS Page 3 <br />
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