AI Frontier Institute

Rental price fixing; algorithmic pricing

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Arizona HB 2490, introduced in the 57th Legislature's Second Regular Session (2026) by Representative De Los Santos, amends Title 44, Chapter 9 of the Arizona Revised Statutes by adding Article 27 (Price Regulations) to prohibit the use of algorithmic pricing devices in the residential rental market. Section 44-1383 defines key terms, including 'algorithmic device' (software or computational processes using machine learning or AI that process nonpublic competitor data to advise landlords on rent pricing), 'coordinator' (a person who sells or licenses such devices), 'nonpublic competitor data' (actual rental prices, occupancy rates, lease dates, rebates, and similar non-public information), and 'coordinating function' (collecting competitor data to recommend prices, supply levels, or contract terms). Section 44-1383.01 prohibits coordinators and landlords from using algorithmic devices that rely on nonpublic competitor data to facilitate agreements among landlords not to compete, or to set rental prices, renewal terms, occupancy levels, or other rental conditions. Violation creates a rebuttable presumption of a conspiracy to restrain trade—against a coordinator if it knew customers competed in the same market and they used the device, and against landlords if two or more used the same device in the same market. That presumption can be rebutted by clear and convincing evidence showing the party lacked knowledge the device used nonpublic competitor data. Violations are treated as unlawful practices under Section 44-1522, enforceable by the Attorney General under Chapter 10, Article 7. The bill applies to landlords with five or more dwelling units, mobile home spaces, or recreational vehicle spaces, and to any coordinator. Exemptions include government-sponsored housing programs, public housing under Title 36 Chapter 12, landlords with four or fewer units, dormitories owned by educational institutions, fraternal/social organization occupancy, and transient hotel/motel occupancy.

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