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REFERENCE TITLE: rental price fixing; algorithmic pricing |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2490 |
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Introduced by Representative De Los Santos
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AN ACT
amending title 44, chapter 9, arizona revised statutes, by adding article 27; relating to trade practices.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, chapter 9, Arizona Revised Statutes, is amended by adding article 27, to read:
ARTICLE 27. PRICE REGULATIONS
44-1383. Definitions
In this article, unless the context otherwise requires:
1. "Algorithm" means a computational process that uses a set of rules to define a sequence of operations.
2. "Algorithmic device":
(a) Means a computational process, machine program or software that uses one or more algorithms, including a computational process derived from machine learning or other artificial intelligence techniques, that processes or calculates nonpublic competitor data to advise a landlord on how much rent to charge.
(b) Does not include a report published periodically by a trade association that receives renter data in an aggregated and anonymous manner. For the purposes of this subdivision, periodic report does not include reports published that are published more than one time per month.
3. "Coordinating function" means the ability to:
(a) Collect the following information from two or more persons:
(i) Historical prices.
(ii) Contemporary prices.
(iii) Supply levels.
(iv) Contract termination.
(v) Renewal dates from two or more persons.
(b) Analyze or process information provided in subdivision of this paragraph by using a system, software or process that computes information or uses information to train an algorithm.
(c) Recommend any of the following:
(i) Prices.
(ii) Supply.
(iii) Output.
(iv) Contract renewal terms.
(v) Other contractual or commercial terms.
4. "Coordinator" means a person that sells, licenses the use of or operates and sells the output that is generated from an algorithmic device that performs a coordinating function for a residential rental property landlord.
5. "Dwelling unit" has the same meaning prescribed in section 33-1310.
6. "Landlord" has the same meaning prescribed in section 33-1310 or 33-1409.
7. "Nonpublic competitor data":
(a) Means Information that is Not widely available or easily accessible to the public.
(b) Includes any of the following:
(i) Actual rental prices.
(ii) Original rental price offers.
(iii) Rebates and discounts offered and accepted.
(iv) Additional charges for amenities or any other fees that may be assessed.
(v) rental availability.
(vi) Occupancy rates.
(vii) Lease start and end dates.
(viii) Any other similar data regardless of whether the information is related to a specific competitor or anonymized.
(ix) Information that is provided by another person that competes in the same market or related market.
8. "Rent" means payments made to a landlord or the landlord's designed agent in full consideration for the rented premises.
9. "Rental agreement" means any oral or written agreement between a landlord and a tenant for the use and occupancy of residential rental property.
10. "Residential rental property":
(a) has the same meaning prescribed in section 33-1901.
(b) Includes any of the following:
(i) Dwelling units.
(ii) Mobile home spaces.
(iii) Recreational vehicle spaces.
11. "Tenant" means the person entering into a rental agreement with a landlord.
44-1383.01. Algorithmic device use prohibited; attorney general; enforcement; applicability
A. A coordinator or a landlord of residential rental property may not use an algorithmic device that uses nonpublic competitor data to perform a coordinating function of residential rental property to:
1. Facilitate an agreement between two or more landlords to not compete for residential agreements.
2. Set or adjust any of the following:
(a) Rental prices.
(b) Renewal terms.
(c) Occupancy levels.
(d) Any other term or condition that affects residential rental property.
B. The use of an algorithmic device in violation of this section creates a rebuttable presumption of a contract or conspiracy to restrain trade or commerce:
1. As against a coordinator when:
(a) The coordinator knew or had reason to know that one or more of the coordinator's customers competed as landlords in the same or related market and intended that the algorithmic device or the algorithmic device's output be used in that market.
(b) Two or more of the coordinator's customers actually competed as landlords in the same or related market and used the algorithmic device or the algorithmic device's output.
2. As against a landlord, when two or more landlords used the same algorithmic device or the algorithmic device's output within the same or related market.
C. a presumption pursuant to subsection B of this section is rebuttable by clear and convincing evidence on a showing that the coordinator or landlord lacked knowledge and could not have reasonably known that the algorithmic device used nonpublic competitor data.
D. An act or practice in violation of this article is an unlawful practice under section 44-1522. The attorney general may investigate and take appropriate action as prescribed by chapter 10, article 7 of this title.
E. The provisions of this article are cumulative and in addition to all other rights, remedies and penalties that may exist at law or in equity.
F. This section applies to:
1. A landlord that has any combination of five or more dwelling units, mobile home spaces or recreational vehicle spaces that are rented or offered for rent at any one time.
2. a Coordinator that either sells or licenses the use of or operates and sells the output from an algorithmic device to any landlord.
G. This article does not apply to:
1. The use of an algorithmic device that is exclusively used in a federal, state or local government sponsored housing program.
2. Public housing pursuant to title 36, chapter 12.
3. A landlord with not more than four of any of the following:
(a) Dwelling units.
(b) Mobile home spaces.
(c) Recreational vehicle spaces.
4. A dormitory or other residential property that is owned by a public or private educational or training institution.
5. Occupancy by a member of a fraternal or social organization.
6. Transient occupancy in a hotel, motel or recreational lodging.