New York State is taking further action to boost protection for renters. It comes from a legislative package signed into law today by Governor Kathy Hochul, which most notably bans landlords from using algorithms such as artificial intelligence to inflate rent prices.
"This legislation will update our antitrust laws to make clear that rent price-fixing via artificial intelligence is against the law and ensure there are boundaries against behaviors that the federal government has found lead to anticompetitive practices and price fixing," State Senator Brad Hoylman-Sigal, said in a statement.
"It's already too hard to be a renter in New York, and we cannot allow exploitative technology make it any harder."
New York becomes the second state to prohibit landlords from using algorithms to artificially fix rents. Connecticut, with the law taking effect first in July, was the first to do this. Some other major cities, including Philadelphia, Hoboken, New Jersey, Minneapolis, San Francisco and Seattle have followed.
RealPage and Yardi, in particular, have been under fire for selling data and algorithmic tools to multifamily property owners. RealPage remains under scrutiny from the Department of Justice in a civil case, with criminal charges dropped in December 2024.
Meanwhile, in May, the House of Representatives passed a package that would prohibit local governments from regulating automated decision systems, including rent-setting algorithms, for the next ten years. It's unclear if the bill will make it to President Donald Trump's desk, as Congress will remain under Republican control at least through 2026.
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