Bill > HB1004

This bill addresses the use of algorithmic devices by landlords to set rental prices, with the goal of preventing anti-competitive pricing practices in the residential housing market. Specifically, the bill prohibits the sale, distribution, or use of algorithmic devices that are designed to help multiple landlords in the same market coordinate rent prices, occupancy levels, or other commercial terms. The legislation defines an "algorithmic device" as a tool that uses algorithms to calculate and recommend rental pricing based on data, and it restricts the use of nonpublic competitor data in these calculations. Landlords and service providers are prohibited from using such devices if they know another party is using a similar device to set rental terms, and if the circumstances suggest a scheme to fix prices. The bill includes some exceptions, such as devices using publicly available data or those used for affordable housing programs. Violations are considered an illegal restraint of trade under the Colorado State Antitrust Act, and the bill also modifies pleading standards to make it easier for plaintiffs to file antitrust lawsuits. The legislative findings note that a White House study estimated anticompetitive pricing algorithms cost renters $3.8 billion in 2023, with the Denver metro area being particularly affected.

Business and Industry

https://leg.colorado.gov/bills/hb25-1004