APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION
Legislative Trends in Algorithms and A . I .
The latest state and federal legislation
Legislators at the federal and state levels continue efforts to protect renters from perceived concerns with algorithm-based revenue management tools and more broadly regulate artificial intelligence ( AI ) -driven technology , putting more compliance burdens on the housing industry .
Federal Updates
Preventing Algorithmic Facilitation of Rental Housing Cartels Act
On May 30 , Representatives Becca Balint ( D-Vt .) and Jesús “ Chuy ” García ( D-Ill . -04 ) introduced the House companion bill to Senator Ron Wyden ’ s ( D-Ore .) Preventing Algorithmic Facilitation of Rental Housing Cartels Act ( S . 3692 ). Wyden ’ s bill , which currently has been referred to the Senate
Committee on the Judiciary , seeks to regulate the application of algorithms in the rental housing market .
The new house bill , like its Senate companion , would make it unlawful for housing providers to coordinate pricing , supply levels , or contractual details through an algorithm . In addition , any facilitations or mergers between two or more property owners that may reduce competition would be prohibited and violate anti-trust laws . This bill also invalidates any pre-dispute joint action waivers in its enforcement .
Preventing Algorithmic Collusion Act of 2024
Earlier this year , Senator Klobuchar ( D-Minn .) also introduced legislation related to the use of algorithms in rental housing . Her bill , the Preventing Algorithmic Collusion Act of 2024 , was introduced in January and has been referred to the Committee on the Judiciary . This legislation prevents the use or distribution of any pricing algorithm that interacts with nonpublic competitor data to determine rental prices . The bill also establishes anti-trust audits , enforces penalties for violations and requires a study from the Federal Trade Commission to assess the impact of pricing algorithms .
State Updates
Colorado Senate Bill ( SB 24-205 ) was signed into law by Governor Polis in May 2024 and represents the first state law aimed at regulating the potential discriminatory effects of algorithms . It includes specific provisions for developers and " deployer [ s ] of the high-risk system " to avoid algorithmic discrimination in their systems . This
28 | TRENDS JULY 2024 www . aamdhq . org