Item 24 - Councilmember Requested Item to Prepare an Ordinance Prohibiting the Use of Algorithmic Pricing Tools

Home Browse Search

SEC. 1. SHORT TITLE. This act may be cited as the "Preventing Algorithmic Rent Fixing in the Rental Housing Market Act." SEC. 2. UNLAWFUL CONDUCT. (a) In General.— (1) CONSPIRACY IN RESTRAINT OF TRADE.—It is unlawful for any real estate lessor, in or affecting commerce, or any agent or subcontractor thereof, to subscribe to, contract with, or otherwise exchange anything of value in return for the services of a service provider. (2) FACILITATION OF CONSPIRACY IN RESTRAINT OF TRADE.—It iS unlawful for any service provider, in or affecting commerce, to facilitate an agreement to not compete among real estate lessors with respect to residential dwelling units. SEC. 3. DEFINITIONS. (a) In general— In this Act: (1) COORDINATING.—The terms "coordinate"or"coordinating"mean, with respect to a service provider— (A) collecting of historical or contemporaneous prices, price changes, supply levels, occupancy rates, or lease or rental contract termination and renewal dates of residential dwelling units from two or more real estate lessors or from public databases; (B) analyzing or processing of the information described in subparagraph (A) using a system, software, or process that uses computation; and (C) recommending rental prices, lease terms, or occupancy levels to a real estate lessor. (2) PERSON.—The term "person"means any natural person, corporation, partnership, limited liability company, firm, or association.' (3) the term `predispute arbitration agreement'means an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement; and (4) the term `predispute joint-action waiver'means an agreement, whether or not part of a predispute arbitration agreement, that would prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or other forum, concerning a dispute that has not yet arisen at the time of the making of the agreement, and (5) SERVICE PROVIDER.—The term "service provider"means any person that performs a coordination function, as defined in Section 3(a)(1) of this Act, for any real estate lessor or rentor. (6) RESIDENTIAL DWELLING UNIT.—The term "residential dwelling unit" (A) means any house, apartment, accessory unit, or other unit intended to be used as a person's primary residence; and (B) does not include inpatient medical care, licensed long-term care, and detention or correctional facilities.