Landlords are now barred from using AI to establish rent costs.
New Jersey Governor Mikie Sherrill signed a law known as the FAIR Act that prohibits landlords from using AI-powered algorithms to set rent prices, reports Jelani Gibson in Governing.
"Sherrill said New Jersey’s affordability crisis and sharp rent increases have been fueled in part by software that aggregates sensitive data from landlords and recommends rents, reducing competition in the rental market." According to bill co-sponsor Assemblywoman Katie Brennan, D-Hudson, "This type of software recommends identical increases across different properties and neighborhoods, driving up rents and pricing people out of their communities. No one should have to bid against a machine designed to squeeze every last dollar out of them."
The law makes using rent-setting software an antitrust violation. The state is also involved in a lawsuit against RealPage, a software company that provides these services to landlords.
Read the full story: New Jersey Bans AI-Driven Rent Setting
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