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MD SB609

MD SB609
Residential Leases - Use of Algorithmic Device by Landlord to Determine Rent - Prohibition


summary

Introduced
01/28/2025
In Committee
01/28/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Prohibiting a landlord from using certain algorithmic devices to determine the amount of rent to charge a residential tenant; making a violation of the Act an unfair, abusive, or deceptive trade practice under the Maryland Consumer Protection Act; and applying the Act prospectively.

AI Summary

This bill prohibits landlords from using algorithmic devices that incorporate nonpublic competitor data when setting residential rent prices. An "algorithmic device" is defined as a technological tool that uses algorithms to calculate rent based on various data points, such as local or statewide rental rates. The bill specifically targets devices that use "nonpublic competitor data," which includes confidential information like actual rent prices, occupancy rates, lease dates, and other similar details not widely available to the public. If a landlord uses such an algorithmic device to determine or adjust rent, it will be considered an unfair, abusive, or deceptive trade practice under Maryland's Consumer Protection Act, which means the landlord could face enforcement actions and penalties. The bill includes two notable exceptions: periodic aggregated reports from trade associations and products used to establish rent limits for affordable housing programs. The legislation will only apply prospectively, meaning it will not affect rental agreements executed before its effective date of October 1, 2025, and aims to prevent potentially discriminatory or non-transparent rent-setting practices in the residential rental market.

Committee Categories

Justice

Sponsors (2)

Last Action

Senate Judicial Proceedings Hearing (13:00:00 2/11/2025 ) (on 02/11/2025)

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