AI Frontier Institute

Virginia Fair Housing Law, et al.; personalized algorithmic pricing disclosures, prohibitions.

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Virginia Senate Bill 585 amends the Virginia Residential Landlord and Tenant Act (Code of Virginia §55.1-1200 and new §55.1-1204.2) to regulate how certain landlords use algorithmic pricing devices to set rents. The bill adds a definition of 'algorithmic pricing device' to §55.1-1200, covering automated systems, software, or platforms that use algorithms, machine learning, or predictive analytics to generate or recommend rental prices, but excluding internal landlord spreadsheets, manual analyses, and publicly available market-rent surveys that do not use individualized data. New §55.1-1204.2 applies only to landlords owning more than four rental dwelling units or more than a four-percent interest in more than four units in Virginia. Covered landlords who use an algorithmic pricing device to set advertised, renewal, or prospective-tenant rent must disclose this in writing before lease execution (or before occupancy for oral leases), stating that such a device was used and naming the specific software or platform. Landlords must also provide tenants a plain-language summary of the general factors the device considers, though proprietary formulas, source code, input weightings, and trade secrets need not be disclosed. Tenants and prospective tenants may request a human review of any algorithmically generated rent determination or renewal increase. Landlords are prohibited from misrepresenting use or non-use of such devices, advertising an algorithmically generated price as nonnegotiable, or using such devices in a deceptive or misleading manner. The Attorney General may seek injunctions and civil penalties of up to $1,000 per violation. The bill explicitly does not create a private right of action, does not require record-keeping beyond ordinary business practice, and does not impose reporting obligations on the Department of Housing and Community Development.

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