New York bans AI-enabled rent price fixing

New York becomes the first state to ban the use of price-fixing software by landlords to set rental rates. The legislation, signed by Governor Kathy Hochul, aims to address the "housing market distortion" caused by these "private data algorithms," which have been linked to soaring rental prices across the country. The law not only outlaws the use of such software to set rental terms, but also considers any property owners who use the software as colluding, whether knowingly or not. This is a distinct violation from simply using the software itself. The use of this software has cost US tenants around $3.8 billion in 2024, according to Hochul's press release. The bill aims to protect renters from "algorithmic price collusion" and ensure that there are boundaries against anticompetitive practices and price fixing. The law will go into effect in 60 days, making New York the first state to take such a step against the use of algorithmic pricing by landlords.