A new bill, introduced by Senator Amy Klobuchar (D-MN), aims to require companies to disclose the use of algorithms when setting rental prices. The Preventing Algorithmic Collusion Act seeks to address the growing affordable housing crisis, with economists estimating that algorithmic price-fixing increased rents by nearly $4 billion in 2023.
The bill directs the Federal Trade Commission (FTC) to audit rental companies using algorithms to set prices. Companies would be required to disclose their pricing algorithm’s source, data rules, and human review processes. The audit aims to prevent price discrimination among consumers.
Failure to comply with the act can result in a civil penalty of up to $10,000 per day or twice the sum of the product sold using the algorithm. The bill comes after the Department of Justice (DOJ) sued rental software maker RealPage, accusing it of violating antitrust laws by sharing information and fixing prices among landlords.
Senator Klobuchar believes the bill will get more traction this time around, as the nation struggles with a growing affordable housing crisis. She hopes that continued antitrust enforcement within the DOJ will address the issue, despite potential resistance from industry groups.
Source: https://www.inman.com/2025/02/06/democrats-reintroduce-bill-to-expose-rental-algorithms