Senators Introduce Legislation to Curb Rent-Setting Algorithms
In a bid to combat rising rental costs, a group of Democratic senators led by Ron Wyden (D-OR) and Peter Welch (D-VT) introduced the “Preventing the Algorithmic Facilitation of Rental Housing Cartels Act of 2024.” The legislation targets software and algorithms used by landlords that allegedly collude and inflate rents, particularly in high-cost markets. According to the Senators press release, this legislation follows recent lawsuits against property software companies. The legislation is also cosponsored by U.S. Senators Amy Klobuchar, (D-MN), Bernie Sanders (I-VT), Mazie Hirono (D-HI), Laphonza Butler (D-CA), Jeff Merkley (D-OR), and Richard Blumenthal (D-CT).
The legislation takes several actions:
- Make it unlawful for rental property owners to contract for the services of a company that coordinates rental housing prices and supply information, and designate such arrangements a per se violation of the Sherman Act;
- Prohibit the practice of coordinating price, supply, and other rental housing information among two or more rental property owners;
- Make it unlawful for two or more coordinators to merge where a merger creates an appreciable risk of materially lessening competition; and
- Allow individual plaintiffs to invalidate any pre-dispute arbitration agreement or pre-dispute joint action waiver that would prevent their bringing a suit under this act.
This legislation follows Senator Wyden’s earlier effort, the “Preventing Algorithmic Collusion Act,” which aims to prevent similar collusion across various industries. It also enjoys backing from advocacy groups like the National Low Income Housing Coalition and the National Alliance to End Homelessness. This bill is not likely to advance during this Congress. A one-page summary is here. A section-by-section is here.
Agreement Reached on FY24 HUD Funding Bill, Policy Riders Remain Key Hurdle
This week, lawmakers negotiating the Transportation-HUD (THUD) funding bill for fiscal year 2024 (FY24) have reached an agreement on overall program funding levels. The four appropriators responsible for drafting the bill, led by Rep. Tom Cole (R-OK) and Sen. Brian Schatz (D-HI), announced completion of this initial negotiation stage. However, the problematic issue of policy riders attached to the bill remains unresolved. These riders are additional legislative measures often used to insert unrelated political items into spending bills. “There are some disagreements we knew we would kick upstairs,” Cole admitted, referring to the more senior leadership who will now tackle these policy riders.
Despite the remaining hurdle, Cole expressed optimism about the overall process. He commended his negotiating partners, Sen. Schatz (D-HI), Sen. Cindy Hyde-Smith (R-MS), and Rep. Mike Quigley (D-IL), for their collaborative approach.
He further noted that progress is being made on other spending bills as well, with “a lot” of the 12 fiscal 2024 measures nearing completion. He praised the dedication and skills of the top appropriators, suggesting a high chance of finalizing the bills. However, Cole acknowledged the bigger challenge lies in getting the bills passed through Congress, highlighting the potential for partisan gridlock to impede progress.
Congressional staff continue to work; despite Congress beginning a two-week recess, or district work period. When lawmakers return to Washington, D.C., they will have three days to pass govt. funding bills.