Housing rental rates and occupancy levels: algorithmic devices.

Senator Pérez's legislation targets the growing use of algorithmic pricing software in California's rental housing market by prohibiting landlords from using shared pricing algorithms to set rental rates and occupancy levels. The bill adds new provisions to the Civil Code barring the sale or licensing of rental pricing algorithms to multiple users within the same market, while also preventing algorithm providers from utilizing nonpublic competitor data about residential properties.

The measure establishes an enforcement framework allowing the Attorney General, city attorneys, and county counsel to pursue civil actions against violations, with penalties up to $1,000 per incident. Individual tenants harmed by prohibited algorithmic pricing practices may also file civil claims and recover attorney fees. Each month of continued violation and each affected rental property constitutes a separate violation under the law.

The bill defines rental pricing algorithms as services using artificial intelligence or software tools to analyze historical or current rental data for rate-setting purposes. While the provisions restrict using nonpublic competitor information, they exempt publicly available data sources like rental registries, census information, and general market reports. The measure also excludes tools used specifically for establishing rent limits in affordable housing programs.