Bill > SB52

This bill aims to regulate the use of rental pricing algorithms in the California housing market by making it unlawful for companies to sell, license, or provide such algorithms with the intent that they be used by multiple landlords to set rental terms. The bill defines a rental pricing algorithm as a service that uses algorithms to calculate and recommend rental rates, lease terms, or occupancy levels using non-public competitor data. Specifically, the bill prohibits: selling algorithms intended for widespread use, using algorithms that process non-public competitor data to set rental terms, and setting rental terms based on algorithmic recommendations that incorporate non-public competitor data. The legislation recognizes that such algorithms, often used by large corporate landlords, can lead to artificially inflated rents, higher vacancy rates, and market distortions. The bill allows the Attorney General, city attorneys, or county counsel to file civil actions for violations, with potential penalties of up to $1,000 per violation. It also permits individuals harmed by such practices to file civil actions and seek damages or injunctive relief. Importantly, the bill does not prevent the use of publicly available rental data or algorithms used for affordable housing programs, and it explicitly states that these provisions are in addition to existing antitrust laws.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB52