Trade Regulation

Plain English Breakdown

Penalties are mentioned in the official text but were removed from 'what_it_does' as they do not fit the summary format of describing what the bill does.

Stop Rent Rigging Act

This bill makes it illegal for rental property owners or managers to use software that helps them set prices together and limits their ability to adjust rent based on such recommendations.

What This Bill Does

• Makes it against the law for people who own or manage rental properties to agree not to compete with each other using special software.
• Forbids rental property owners from setting or changing rents based on advice from certain types of software.
• Defines what a 'coordinating function' is, which includes collecting and analyzing price data and making recommendations about rent prices.
• Specifies that the use of such coordinating functions for affordable housing programs is allowed.

Who It Names or Affects

• People who own or manage rental properties in Tennessee.
• Companies that make software used to set rental prices.

Terms To Know

coordinating function

A process where a system collects price data from multiple rental property owners, analyzes it, and gives recommendations on rent prices or other lease terms.

algorithmic device

Any machine, software, or program that performs a coordinating function with or without human help.

Limits and Unknowns

• The bill does not specify how it will be enforced.
• It is unclear what specific penalties will apply to individuals versus corporations.
• The bill only applies to Tennessee and does not affect other states.

Official Summary Text

This bill establishes that i
t is an unlawful restraint of trade or commerce for a
natural
person
or a legal entity (together, "person")
to knowingly or recklessly facilitate an agreement between or among two or more residential rental property owners or managers to not compete with respect to residential rental dwelling units, including by operating or licensing a software, data analytic
s service, or algorithmic device that performs a coordinating function on behalf of
,
or between and among
,
such residential rental property owners or managers.

This bill establishes that i
t is an unlawful restraint of trade or commerce for a residential rental property owner or manager to knowingly or recklessly set or adjust rental prices, lease renewal terms, occupancy levels, or other lease terms and conditions in one or more of the own
er's or manager's residential rental properties based on recommendations from a software, data analytics service, or algorithmic device performing a coordinating function.

As used above, a
"
c
oordinating function
" means performing
all of the followin
g
:



Collecting historical or contemporaneous prices, supply levels, or lease or rental contract termination and renewal dates of residential dwelling units from two or more residential rental property owners or managers
, if
at least two such owners or managers are not wholly owned subsidiaries of the same parent entity or otherwise owned or managed by the same owner or manager
.


Analyzing or processing
such
information using a system, software, or process that uses computation, including by using that information to train an algorithm
.


Recommending rental prices, lease renewal terms, ideal occupancy levels, or other lease terms and conditions to a residential rental property owner or manager
.

However, this bill clarifies that such term does
not include a product used for the purpose of establishing rent or income limits in accordance with an affordable housing program administered by a federal, state, or local government or other political subdivision
.

REMEDIES

This bill provides that a
violation of
this bill
is subject to the same civil and criminal penalties as a violation of
agreements in restraint of trade. Any
person who engages in any such
offense
or who, as principal, manager, director, or agent, or in any other capacity, knowingly carries out
such violation
, commits a Class E felony
, which is punishable by a term of imprisonment of
no less than
one
year nor more than six years
and a potential
fine not to exceed
$3,000. However, such a violation
by a cor
poration
must
upon conviction be punished by a fine not exceeding
$1
million
. Further, a
ny person who is directly or indirectly injured or damaged by
such
violation
may
sue for and recover, in any court of competent jurisdiction, equitable relief and actual damages
.

Current Bill Text

SENATE BILL 1990
By Lamar

HOUSE BILL 2234
By Dixie
HB2234
010771
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 47
and Title 66, relative to manipulation of rental
prices.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Stop Rent Rigging Act."
SECTION 2. Tennessee Code Annotated, Title 47, Chapter 25, Part 1, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Algorithm" means a computational process that uses a set of rules to
define a sequence of operations;
(2) "Algorithmic device" means any machine, device, computer program,
or computer software that on its own or with human assistance performs a
coordinating function;
(3) "Coordinating function":
(A) Means performing all of the following subfunctions:
(i) Collecting historical or contemporaneous prices, supply
levels, or lease or rental contract termination and renewal dates of
residential dwelling units from two (2) or more residential rental
property owners or managers; provided, that at least two (2) such
residential rental property owners or managers are not wholly
owned subsidiaries of the same parent entity or otherwise owned
or managed by the same residential rental property owner or
manager;

- 2 - 010771

(ii) Analyzing or processing the information described in
subdivision (a)(3)(A)(i) using a system, software, or process that
uses computation, including by using that information to train an
algorithm; and
(iii) Recommending rental prices, lease renewal terms,
ideal occupancy levels, or other lease terms and conditions to a
residential rental property owner or manager; and
(B) Does not include a product used for the purpose of
establishing rent or income limits in accordance with an affordable
housing program administered by a federal, state, or local government or
other political subdivision;
(4) "Person" means a natural person or a legal entity; and
(5) "Residential rental property owner or manager" means an individual
or entity that owns or is a beneficial owner of, directly or indirectly, in whole or in
part, or manages one (1) or more residential rental dwelling units in this state.
(b) It is an unlawful restraint of trade or commerce for a person to knowingly or
recklessly facilitate an agreement between or among two (2) or more residential rental
property owners or managers to not compete with respect to residential rental dwelling
units, including by operating or licensing a software, data analytics service, or
algorithmic device that performs a coordinating function on behalf of or between and
among such residential rental property owners or managers.
(c) It is an unlawful restraint of trade or commerce for a residential rental
property owner or manager to knowingly or recklessly set or adjust rental prices, lease
renewal terms, occupancy levels, or other lease terms and conditions in one (1) or more
of the owner's or manager's residential rental properties based on recommendations

- 3 - 010771

from a software, data analytics service, or algorithmic device performing a coordinating
function.
(d) A violation of subsection (b) or (c) is subject to the same civil and criminal
penalties as a violation of § 47-25-101.
SECTION 3. This act takes effect July 1, 2026, the public welfare requiring it.