103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5871

 

Introduced , by Rep. Kevin John Olickal

 

SYNOPSIS AS INTRODUCED:
 
New Act
815 ILCS 505/2EEEE new

    Creates the Prohibition of Algorithmics in Rent Act. Provides that in setting the amount of rent to be charged to a tenant for the occupancy of a residential premises, including determining any change in the amount of rent to be charged for the renewed occupancy of a residential premises, a landlord shall not employ, use, or rely upon, or cause another person to employ, use, or rely upon, an algorithmic device that uses, incorporates, or was trained with nonpublic competitor data. Defines "algorithmic device" to mean a device that uses one or more algorithms to perform calculations of data, including data concerning local or statewide rent amounts being charged to tenants by landlords, for the purpose of advising a landlord concerning the amount of rent that the landlord may consider charging a tenant. Provides that this definition does not include (i) any report published periodically, but no more frequently than monthly, by a trade association that receives renter data and publishes it in an aggregated and anonymous manner; or (ii) a product used for the purpose of establishing rent or income limits in accordance with the affordable housing program guidelines of a local government, the State, the federal government, or other political subdivision. Amends the Consumer Fraud and Deceptive Business Practices Act to make a corresponding change. Provides that any person who violates the Prohibition of Algorithmics in Rent Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.


LRB103 39900 JRC 70904 b

 

 

A BILL FOR

 

HB5871LRB103 39900 JRC 70904 b

1    AN ACT concerning property.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Prohibition of Algorithmics in Rent Act.
 
6    Section 5. Legislative intent. The General Assembly finds
7that, with certain exceptions, the use of an algorithmic
8device by a landlord to set the amount of a residential
9tenant's rent should be prohibited because the use of
10algorithmic devices:
11        (1) has been the subject of lawsuits that allege such
12    products pose a heightened risk of anticompetitive
13    conduct, price fixing, and collusion, all of which
14    allegedly result in higher rents for residential tenants;
15    and
16        (2) allegedly poses the risk that landlords will
17    outsource pricing decisions, which the General Assembly
18    finds should always be made by the landlord.
 
19    Section 10. Definitions. As used in this Act:
20    "Algorithmic device" means a device that uses one or more
21algorithms to perform calculations of data, including data
22concerning local or statewide rent amounts being charged to

 

 

HB5871- 2 -LRB103 39900 JRC 70904 b

1tenants by landlords, for the purpose of advising a landlord
2concerning the amount of rent that the landlord may consider
3charging a tenant. It includes a product that incorporates an
4algorithmic device but does not include:
5        (1) any report published periodically, but no more
6    frequently than monthly, by a trade association that
7    receives renter data and publishes it in an aggregated and
8    anonymous manner; or
9        (2) a product used for the purpose of establishing
10    rent or income limits in accordance with the affordable
11    housing program guidelines of a local government, the
12    State, the federal government, or other political
13    subdivision.
14    "Nonpublic competitor data" means information that is not
15widely available or easily accessible to the public, including
16information about actual rent prices, occupancy rates, lease
17start and end dates, and similar data, regardless of whether
18the data are attributable to a specific competitor or
19anonymized, and that is derived from or otherwise provided by
20another person that competes in the same market as a person, or
21a related market.
22    "Rent" means the total amount of rent, including
23concessions and fees, that a residential tenant is required to
24pay under a rental agreement.
 
25    Section 15. Algorithmic device in setting rent amount

 

 

HB5871- 3 -LRB103 39900 JRC 70904 b

1prohibited.
2    (a) In setting the amount of rent to be charged to a tenant
3for the occupancy of a residential premises, including
4determining any change in the amount of rent to be charged for
5the renewed occupancy of a residential premises, a landlord
6shall not employ, use, or rely upon, or cause another person to
7employ, use, or rely upon, an algorithmic device that uses,
8incorporates, or was trained with nonpublic competitor data.
9    (b) A violation of this Act constitutes an unlawful
10practice within the meaning of the Consumer Fraud and
11Deceptive Business Practices Act.
 
12    Section 20. Applicability. This Act applies to a
13landlord's calculation of the amount of rent that the landlord
14charges for the occupancy of a residential premises under any
15rental agreement that is executed on or after the effective
16date of this Act.
 
17    Section 90. The Consumer Fraud and Deceptive Business
18Practices Act is amended by adding Section 2EEEE as follows:
 
19    (815 ILCS 505/2EEEE new)
20    Sec. 2EEEE. Violations of the Prohibition of Algorithmics
21in Rent Act. Any person who violates the Prohibition of
22Algorithmics in Rent Act commits an unlawful practice within
23the meaning of this Act.