Bill > HB2491

This bill introduces new regulations regarding the use of algorithmic devices in determining residential rental prices in Texas. The legislation defines an "algorithmic device" as a tool that uses algorithms to perform data calculations, with specific exceptions for certain periodic reports and affordable housing programs. The bill prohibits the sale of algorithmic device services intended to set or recommend residential rent amounts, and restricts the use of "nonpublic competitor data" - which includes confidential information about rent prices, occupancy rates, and lease details not widely accessible to the public. Specifically, businesses providing algorithmic services to landlords cannot use nonpublic competitor data from Texas residential properties in their calculations. The bill classifies violations of these provisions as a deceptive trade practice, which can be legally actionable under existing consumer protection laws. The new regulations will take effect on September 1, 2025, giving businesses time to adjust their practices. The primary aim of the bill appears to be preventing potentially unfair or anti-competitive practices in the rental market by limiting the use of proprietary, non-public data in algorithmic pricing tools.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2491