Preventing Algorithmic Rent Fixing.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 970

Short Title: Preventing Algorithmic Rent Fixing. (Public)
Sponsors: Representatives Longest, Lopez, Morey, and Prather (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
April 14, 2025
*H970-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PREVENT AL GORITHMIC RENT FIXIN G IN THE RENTAL HOUS ING 2
MARKET. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Chapter 42 of the General Statutes is amended by adding a new Article 5
to read: 6
"Article 8. 7
"Prevention of Algorithmic Rent Fixing. 8
"§ 42-80. Definitions. 9
The following definitions apply in this Article: 10
(1) Coordinate or coordinating function. – Any of the following with respect to a 11
service provider: 12
a. Collecting of historical or contemporaneous prices, price changes, 13
supply levels, occupancy rates, or lease or rental contract termination 14
and renewal dates of residential dwelling units from two or more real 15
estate lessors or from public databases. 16
b. Analyzing or processing of the information described i n 17
sub-subdivision a. of this subdivision using a system, software, or 18
process that uses computation. 19
c. Recommending rental prices, lease terms, or occupancy levels to a real 20
estate lessor. 21
d. Using a pricing algorithm that uses, incorporates, or was trained with 22
nonpublic competitor data to set the amount of rent for a residential 23
dwelling unit or any other commercial term contained within a 24
residential rental agreement. 25
(2) Nonpublic competitor data. – Nonpublic data that is derived from or otherwise 26
provided by another person that competes in the same market as a person, or 27
a related market. This term does not include information distributed, reported, 28
or otherwise communicated in a way that does not reveal any underlying data 29
from a competitor, such a s narrative industry reports, news reports, business 30
commentaries, or generalized industry survey results. 31
(3) Nonpublic data. – Information that is not widely available or easily accessible 32
to the public, including inform ation about price, commercial terms, and 33
related products or services, regardless of whether the data is attributable to a 34
specific competitor or anonymized. 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 970-First Edition
(4) Person. – As defined in G.S. 12-3. 1
(5) Pre-dispute arbitration agreement. – An agreement to arbitrate a dispute that 2
has not yet arisen at the time of the making of the agreement. 3
(6) Pre-dispute joint -action waiver. – An agreement, whether or not part of a 4
pre-dispute arbitration agreement that would prohibit, or waive the right of, 5
one of the parties to the agreement to participate in a joint, class, or collective 6
action in a judicial, arbitral, administrative, or other forum, concerning a 7
dispute that has not yet arisen at the time of the making of the agreement. 8
(7) Pricing algorithm. – Any process using calculations that analyzes data for the 9
purpose of recommending or setting prices or commercial terms, including 10
processes that utilize machine learning or other artificial intelligence 11
techniques. 12
(8) Real estate lessor. – Any individual , corporation, partnership, association, 13
joint-stock company, trust, or unincorporated organization that owns and 14
leases real property or any portion thereof in the form of a residential dwelling 15
unit. 16
(9) Residential dwelling unit. – Any house, apartment, accessory unit, or other 17
housing unit intended to be used as a person's primary residence. This term 18
does not include inpatient medical care, licensed long-term care, or detention 19
or correctional facilities. 20
(10) Service provider. – A person that provides a coordinating function for a real 21
estate lessor. 22
"§ 42-81. Unlawful coordination. 23
(a) It is unlawful for any real estate lessor, or any agent or subcontractor of a real estate 24
lessor, within North Carolina to subscribe to, contract for, or otherwise exchange anything of 25
value in return for coordinating functions. 26
(b) It is unlawful for any service provider to facilitate an agreement to not compete among 27
real estate lessors with respect to residential dwelling units within the State of North Carolina. 28
"§ 42-82. Enforcement. 29
(a) A violation of any provision of this Article constitutes an unfair or deceptive trade 30
practice under G.S. 75-1.1. Any party aggrieved by a violation of this Article may bring a cause 31
of action against the real estate lessor or service provider, as appropriate, and is entitled to the 32
relief available in Chapter 75 of the General Statutes. The Attorney General is hereby empowered 33
to enforce this Article as allowed by Chapter 75 of the General Statutes. 34
(b) Notwithstanding any other provision of law, a t the election of the person alleging 35
conduct constitut ing a violation of this section, or the named representative o f a class in a 36
collective action alleging such conduct, no pre-dispute arbitration agreement or pre -dispute 37
joint-action waiver shall be valid or enforceable with respect to a case which relates to a violation 38
of this Article." 39
SECTION 2. This act becomes effective October 1, 2025, and applies to acts or 40
omissions occurring on or after that date. 41