NY A11490: Prohibits dynamic pricing, algorithm or automated pricing tools in the sale or rental of any residential dwelling unit Verified

Bill A11490 introduces significant restrictions on the use of dynamic pricing and automated pricing tools in the sale or rental of residential dwelling units in New York. Specifically, it prohibits landlords, real estate brokers, and platforms from employing any algorithmic pricing adjustments based on various market indicators or personal data of potential tenants or buyers. The bill also addresses the issue of shill bidding in online auctions, requiring clear disclaimers about its illegality. Compliance is mandatory for all landlords, real estate brokers, and platforms involved in residential real estate transactions. The bill does not specify a compliance deadline but states that it will take effect thirty days after becoming law. Non-compliance could lead to legal repercussions, although specific penalties are not detailed in the text. Key definitions include 'algorithm' as a computational process for generating outputs and 'dynamic pricing' as any automated price adjustment based on algorithms. The bill also defines 'online real estate auction platform' to encompass any digital service facilitating the auction of residential units. This legislation reflects a growing trend in various states to regulate algorithmic practices in housing markets, aiming to ensure fair pricing and transparency for consumers.