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Full Text of HB1427
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HB1427 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1427
Introduced 1/28/2025, by Rep. Lilian Jiménez - Kevin John Olickal
SYNOPSIS AS INTRODUCED:
New Act
815 ILCS 505/2HHHH 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.
LRB104 05786 SPS 15816 b
A BILL FOR
HB1427
LRB104 05786 SPS 15816 b
1
AN ACT concerning property.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
4
Section 1.
Short title.
This Act may be cited as the
5
Prohibition of Algorithmics in Rent Act.
6
Section 5.
Legislative intent.
The General Assembly finds
7
that, with certain exceptions, the use of an algorithmic
8
device by a landlord to set the amount of a residential
9
tenant's rent should be prohibited because the use of
10
algorithmic 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
21
algorithms to perform calculations of data, including data
22
concerning local or statewide rent amounts being charged to
HB1427
- 2 -
LRB104 05786 SPS 15816 b
1
tenants by landlords, for the purpose of advising a landlord
2
concerning the amount of rent that the landlord may consider
3
charging a tenant. It includes a product that incorporates an
4
algorithmic 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
15
widely available or easily accessible to the public, including
16
information about actual rent prices, occupancy rates, lease
17
start and end dates, and similar data, regardless of whether
18
the data are attributable to a specific competitor or
19
anonymized, and that is derived from or otherwise provided by
20
another person that competes in the same market as a person, or
21
a related market.
22
"Rent" means the total amount of rent, including
23
concessions and fees, that a residential tenant is required to
24
pay under a rental agreement.
25
Section 15.
Algorithmic device in setting rent amount
HB1427
- 3 -
LRB104 05786 SPS 15816 b
1
prohibited.
2
(a) In setting the amount of rent to be charged to a tenant
3
for the occupancy of a residential premises, including
4
determining any change in the amount of rent to be charged for
5
the renewed occupancy of a residential premises, a landlord
6
shall not employ, use, or rely upon, or cause another person to
7
employ, use, or rely upon, an algorithmic device that uses,
8
incorporates, or was trained with nonpublic competitor data.
9
(b) A violation of this Act constitutes an unlawful
10
practice within the meaning of the Consumer Fraud and
11
Deceptive Business Practices Act.
12
Section 20.
Applicability.
This Act applies to a
13
landlord's calculation of the amount of rent that the landlord
14
charges for the occupancy of a residential premises under any
15
rental agreement that is executed on or after the effective
16
date of this Act.
17
Section 90.
The Consumer Fraud and Deceptive Business
18
Practices Act is amended by adding Section 2HHHH as follows:
19
(815 ILCS 505/2HHHH new)
20
Sec. 2HHHH.
Violations of the Prohibition of Algorithmics
21
in Rent Act.
Any person who violates the Prohibition of
22
Algorithmics in Rent Act commits an unlawful practice within
23
the meaning of this Act.
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