AI Frontier Institute

AN ACT relating to the use of algorithmic devices in setting the amount of rent to be charged to a residential tenant.

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This Kentucky House bill (26 RS BR 831) has not been enacted. It is in the House Judiciary Committee. If enacted, it would create a new section of KRS Chapter 383 that bars landlords from using algorithmic rent-setting tools. The bill defines an "algorithmic device" as a device that uses one or more algorithms to calculate data, including local or statewide rent amounts, to advise a landlord on what rent to consider charging. The definition covers products that incorporate such a device. It excludes products that a landlord or the landlord's affiliates design internally and use exclusively. Under Section 1(2), a landlord could not employ, use, or rely on an algorithmic device, or cause another person to do so, in setting rent for a dwelling unit. Section 1(3) treats a violation as an unfair, false, misleading, or deceptive practice under KRS 367.170 and an illegal restraint of trade under KRS 367.175. It also gives the Attorney General the remedies, powers, and duties of the Consumer Protection Act, KRS 367.110 to 367.300. Section 2 applies the rule to rent calculations for rental agreements executed on or after the Act's effective date. The preamble cites concerns about software-enabled price fixing and Kentucky's own antitrust lawsuit.

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