SB 52: Housing rental terms: algorithmic devices.

Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations.

This bill would make it unlawful for any person to sell, license, or otherwise provide to 2 or more persons a rental pricing algorithm, as defined, with the intent or reasonable expectation that it be used by 2 or more persons, as specified, to set rental terms, as defined, for residential premises. The bill would make it unlawful for any person to use a rental pricing algorithm to recommend rental terms for residential premises if the person knew or should have known that the rental pricing algorithm would be used to set rental terms by 2 or more landlords in the same or related market used or if the person coerces any other person to use the rental pricing algorithm to set rental terms for residential premises in the same market or a related market. The bill would also make it unlawful for a person to set or adopt rental terms based on the recommendation of a rental pricing algorithm if the person knows or should know that the rental pricing algorithm processes nonpublic competitor data, as defined, to set rental terms and that the pricing algorithm or the recommendation of the algorithm was used by another person to set or recommend a rental term for residential premises in the same market or a related market.

Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws.

This bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a person who is harmed by a violation of the bill to file a civil action, as specified.