U.S. State Bills Targeting Rent-Setting Algorithms Seeing Mixed Results

Antitrust attorney Ken Racowski was cited in an MLex article about state legislative efforts to regulate algorithmic rent-setting tools. Bills have seen mixed results: Connecticut became the first state to pass a law banning the use of "revenue management" devices, whereas Colorado Gov. Jared Polis vetoed a bill that would have blocked the use of an algorithmic pricing tool to set residential rents. One of the areas of focus is the use of public versus non-public data; for example, Connecticut's new law bans rent-setting tools that rely on non-public data, and a 2023 Tennessee federal court order sustaining claims against property management software company RealPage centered on the presence of proprietary data. Mr. Racowski explained there currently does not exist a legal standard regarding the significance of private data when determining whether an algorithm facilitates collusion, meaning states are playing "pin the tail on the donkey" while awaiting guidance from courts.

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