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The Prohibition of Algorithmics in Rent Act prevents Illinois landlords from using algorithmic devices that incorporate nonpublic competitor data when determining residential rent. Violations are considered unlawful under the Consumer Fraud and Deceptive Business Practices Act.
Key Provisions
Section 5: Prohibits landlords from using algorithmic devices with nonpublic competitor data for rent setting.
Section 10: Defines 'algorithmic device' and outlines exceptions for certain reports and affordable housing tools.
Section 15: Violation constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
Latest Legislative Action
Referred to Rules Committee
Bill Sponsors
Name
Role
District
Kevin OlickalD
Sponsor
HD-016
Compliance Checklist
Avoid using algorithmic devices that incorporate nonpublic competitor data for rent setting. Who: Landlords in Illinois Penalty: Considered an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.
The Prohibition of Algorithmics in Rent Act, introduced in the Illinois General Assembly as HB5871, aims to restrict the use of algorithmic devices by landlords when setting or adjusting residential rent. Specifically, the bill prohibits landlords from employing or relying on algorithmic devices that use, incorporate, or are trained with nonpublic competitor data. The term 'algorithmic device' is defined as any device using one or more algorithms to calculate data, including rent amounts, to advise landlords on rent charges. The bill excludes reports published by trade associations in an aggregated and anonymous manner and products used to establish rent limits under affordable housing guidelines. Violations of this Act are deemed unlawful practices under the Consumer Fraud and Deceptive Business Practices Act. The Act applies to rental agreements executed on or after its effective date.
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