AI Frontier Institute

PREVENT RENTAL PRICE FIXING

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Illinois SB1996, the Preventing Algorithmic Rent Fixing in the Rental Housing Market Act, introduced February 6, 2025 by Sen. Graciela Guzmán, prohibits landlords (real estate lessors) and their agents or subcontractors from subscribing to, contracting with, or exchanging anything of value for the services of a 'real estate service provider'—defined as any person who collects rental price, supply, or occupancy data from two or more landlords, processes it computationally, and recommends rental prices or lease terms back to landlords. The bill also prohibits real estate service providers from facilitating non-compete agreements among landlords regarding residential dwelling units. Violations are classified as unlawful practices under the existing Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2HHHH), giving the Attorney General full enforcement authority. Under Section 20, the Attorney General, a State's Attorney, or any injured private party may file a civil action; courts may award compensatory damages, treble damages, injunctive and declaratory relief, interest, and attorney's fees and costs. Pre-dispute arbitration agreements and joint-action waivers are unenforceable against plaintiffs who elect to bring claims under this Act. The bill includes a severability clause under Section 25.

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