On Thursday, New York State Governor Kathy Hochul put pen to paper on a significant piece of legislation, outlawing the use of price-manipulating software by landlords for determining rents. This move positions New York as the inaugural U.S. state to implement a state-wide prohibition on such algorithmic pricing practices. The legislation zeroes in on the utilization of software, such as that provided by RealPage, by landlords to fix rents. Proponents of the bill contend that such tactics warp the housing market and infringe upon the rights and interests of tenants.

The new law categorizes the employment of such software to dictate rental conditions as unlawful collusion. This legislative step comes in the wake of inquiries and legal actions initiated by the government against RealPage, with the overarching goal of shielding tenants from the perils of algorithmic price-fixing.

The bill serves as an update to existing antitrust laws, clearly articulating that the use of artificial intelligence to tamper with rent prices is a violation of the law. The provisions of this law are set to come into force 60 days from its enactment.