AI Frontier Institute

ALGORITHMICS PROHIBITED-RENT

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Illinois HB1427, the Prohibition of Algorithmics in Rent Act, would bar landlords from using algorithmic devices that incorporate or were trained on nonpublic competitor data when setting or adjusting residential rent. Under Section 15, landlords may not employ, use, rely upon, or cause others to use such tools for any rental agreement executed on or after the law's effective date (Section 20). 'Algorithmic device' is defined in Section 10 as any algorithm-based tool that calculates rent data to advise landlords on pricing, but explicitly excludes monthly aggregated and anonymous trade-association reports and tools used solely to set affordable-housing rent or income limits. 'Nonpublic competitor data' includes actual rent prices, occupancy rates, and lease dates drawn from competing market participants, even if anonymized. Section 5 states the legislature's finding that such tools risk anticompetitive conduct, price-fixing, collusion, and the outsourcing of pricing decisions that landlords should make themselves. Section 90 amends the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2HHHH) to classify any violation of the new Act as an unlawful practice under that statute, making it enforceable under existing consumer-protection law.

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