Bill Text: IL HB5871 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Prohibition of Algorithmics in Rent Act. Provides that in setting the amount of rent to be charged to a tenant for the occupancy of a residential premises, including determining any change in the amount of rent to be charged for the renewed occupancy of a residential premises, a landlord shall not employ, use, or rely upon, or cause another person to employ, use, or rely upon, an algorithmic device that uses, incorporates, or was trained with nonpublic competitor data. Defines "algorithmic device" to mean a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. Provides that this definition does not include (i) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (ii) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the State, the federal government, or other political subdivision. Amends the Consumer Fraud and Deceptive Business Practices Act to make a corresponding change. Provides that any person who violates the Prohibition of Algorithmics in Rent Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-11-12 - Referred to Rules Committee [HB5871 Detail]

Download: Illinois-2023-HB5871-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5871 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
New Act
815 ILCS 505/2EEEE new
Creates the Prohibition of Algorithmics in Rent Act. Provides that in setting the amount of rent to be charged to a tenant for the occupancy of a residential premises, including determining any change in the amount of rent to be charged for the renewed occupancy of a residential premises, a landlord shall not employ, use, or rely upon, or cause another person to employ, use, or rely upon, an algorithmic device that uses, incorporates, or was trained with nonpublic competitor data. Defines "algorithmic device" to mean a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. Provides that this definition does not include (i) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (ii) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the State, the federal government, or other political subdivision. Amends the Consumer Fraud and Deceptive Business Practices Act to make a corresponding change. Provides that any person who violates the Prohibition of Algorithmics in Rent Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.
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A BILL FOR
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AN ACT concerning property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Prohibition of Algorithmics in Rent Act.
Section 5. Legislative intent. The General Assembly finds
that, with certain exceptions, the use of an algorithmic
device by a landlord to set the amount of a residential
tenant's rent should be prohibited because the use of
algorithmic devices:
(1) has been the subject of lawsuits that allege such
products pose a heightened risk of anticompetitive
conduct, price fixing, and collusion, all of which
allegedly result in higher rents for residential tenants;
and
(2) allegedly poses the risk that landlords will
outsource pricing decisions, which the General Assembly
finds should always be made by the landlord.
Section 10. Definitions. As used in this Act:
"Algorithmic device" means a device that uses one or more
algorithms to perform calculations of data, including data
concerning local or statewide rent amounts being charged to

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tenants by landlords, for the purpose of advising a landlord
concerning the amount of rent that the landlord may consider
charging a tenant. It includes a product that incorporates an
algorithmic device but does not include:
(1) any report published periodically, but no more
frequently than monthly, by a trade association that
receives renter data and publishes it in an aggregated and
anonymous manner; or
(2) a product used for the purpose of establishing
rent or income limits in accordance with the affordable
housing program guidelines of a local government, the
State, the federal government, or other political
subdivision.
"Nonpublic competitor data" means information that is not
widely available or easily accessible to the public, including
information about actual rent prices, occupancy rates, lease
start and end dates, and similar data, regardless of whether
the data are attributable to a specific competitor or
anonymized, and that is derived from or otherwise provided by
another person that competes in the same market as a person, or
a related market.
"Rent" means the total amount of rent, including
concessions and fees, that a residential tenant is required to
pay under a rental agreement.
Section 15. Algorithmic device in setting rent amount

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prohibited.
(a) In setting the amount of rent to be charged to a tenant
for the occupancy of a residential premises, including
determining any change in the amount of rent to be charged for
the renewed occupancy of a residential premises, a landlord
shall not employ, use, or rely upon, or cause another person to
employ, use, or rely upon, an algorithmic device that uses,
incorporates, or was trained with nonpublic competitor data.
(b) A violation of this Act constitutes an unlawful
practice within the meaning of the Consumer Fraud and
Deceptive Business Practices Act.
Section 20. Applicability. This Act applies to a
landlord's calculation of the amount of rent that the landlord
charges for the occupancy of a residential premises under any
rental agreement that is executed on or after the effective
date of this Act.
Section 90. The Consumer Fraud and Deceptive Business
Practices Act is amended by adding Section 2EEEE as follows: