H.R. 10110: Housing Price Transparency Act

This bill would require landlords or other people who use a pricing algorithm to set or recommend rents for housing to clearly disclose that an algorithm was used to determine the monthly rate.

The bill defines a pricing algorithm broadly. It includes any computerized process, including one using machine learning or other artificial intelligence, that uses data to recommend or set a price or other contract term.

Enforcement

The bill says that failing to make this disclosure would count as an unfair or deceptive practice under federal consumer protection law. That means the Federal Trade Commission (FTC) could enforce the rule using its existing powers.

It also gives state attorneys general and other state officials the ability to bring civil cases in state court if they believe residents of their state were harmed by a violation. They could seek to stop the practice, enforce compliance, or obtain damages or other relief.

In addition, a person who is harmed by a violation could bring a private lawsuit in federal court. A successful plaintiff could seek:

• an order stopping the violation,
• actual monetary damages, or at least $10,000 for each violation, whichever is greater,
• costs and reasonable attorney’s fees if they win.

The bill sets a 2-year time limit for filing a private lawsuit, starting when the person discovered, or reasonably should have discovered, the violation.

What it does not do

The bill does not ban the use of algorithms in rental pricing. Instead, it requires disclosure when such tools are used. It also does not specify what exact wording the disclosure must use, beyond saying it must clearly disclose that an algorithm was used to set monthly rates.

Relevant Companies

None found