Bill > SB52

This bill addresses the use of algorithmic pricing software in rental housing markets by making it unlawful for companies to sell, provide, or use rental pricing algorithms that unfairly manipulate rental prices. Specifically, the bill prohibits selling or using rental pricing algorithms that process nonpublic competitor data to recommend rental terms across multiple properties or markets, with the intent of preventing artificial inflation of rents. A rental pricing algorithm is defined as a software service that uses algorithms to calculate rental prices using proprietary data about local rental markets. 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, and also permits individuals who are harmed by such practices to file civil lawsuits. The legislation is motivated by concerns that algorithmic pricing software has led to higher rents, increased vacancy rates, and more evictions, particularly in California, where 44% of households are renters and median rents are significantly higher than the national average. The bill aims to protect renters and promote fair competition in the rental housing market by preventing the misuse of data-driven pricing technologies.

Budget and Finance, Business and Industry, Justice

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