AI Frontier Institute

Relating To Antitrust.

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Hawaii House Bill 831 (33rd Legislature, 2025) amends Chapter 480 of the Hawaii Revised Statutes to prohibit algorithmic rent price-fixing in the residential rental market. Section 2 adds a new section (§480-[blank]) declaring it unlawful for: (1) a rental property owner or their agent to subscribe to or use the services of a 'coordinator'; (2) a coordinator to facilitate anti-competitive agreements among rental property owners by performing a 'coordinating function'; or (3) two or more rental property owners to engage in 'consciously parallel pricing coordination.' A 'coordinating function' is defined as collecting rental data from multiple landlords, analyzing it through algorithmic or computational systems, and recommending rental prices or lease terms. A 'coordinator' includes any person operating software or data analytics services performing such functions. Section 2 also lowers the pleading standard in civil actions by requiring only that a complaint plausibly allege the existence of a conspiracy, without needing to exclude the possibility of independent action. The Department of the Attorney General is required to develop a public education program—including website information and guidance for consumers who suspect violations—and to adopt implementing rules under Chapter 91. Section 3 amends §480-16(a) to include the new section in the list of provisions triggering criminal penalties: fines up to $100,000 and/or imprisonment up to three years for natural persons, and fines up to $1,000,000 for entities. The bill takes effect upon approval per Section 6.

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