Housing Price Transparency Act

Full Title:
Housing Price Transparency Act

Summary#

This bill, the Housing Price Transparency Act, would require anyone who uses an algorithm to recommend or set prices for rental housing to clearly disclose that an algorithm was used to set monthly rates. The bill defines a "pricing algorithm" as any computational process, including processes from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term.

The Federal Trade Commission (FTC) would enforce the disclosure requirement and treat violations as unfair or deceptive acts or practices under the FTC Act. States could bring civil actions on behalf of their residents (parens patriae) to stop violations, enforce compliance, or obtain damages and other relief, with notice to the FTC. The FTC may intervene in such state actions and the FTC or U.S. Department of Justice may limit state actions while a federal action is pending.

The bill creates a private right of action. A person injured by a violation may sue in federal court for an injunction, actual monetary damages, or at least $10,000 per violation, and courts must award costs and reasonable attorney's fees to a prevailing plaintiff. A private suit must be filed within 2 years after the person discovered or reasonably could have discovered the violation.

What it means for you#

  • If you set or recommend monthly rental prices using an algorithm, you must clearly disclose that an algorithm was used.
  • Renters may see notices that an algorithm influenced advertised or charged monthly rates.
  • The FTC can investigate and bring enforcement actions; state attorneys general can sue on behalf of residents; individuals can sue for injunctions and money damages.
  • The bill covers algorithms that use machine learning or other AI techniques to set or recommend prices or commercial terms.

Expenses#

  • The bill specifies monetary remedies available to private plaintiffs (actual monetary loss or not less than $10,000 per violation, plus costs and reasonable attorney's fees).
  • No publicly available information on estimated federal, state, or private implementation or compliance costs.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.