GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH40497-NO-60A
Short Title: Preventing Algorithmic Rent Fixing. (Public)
Sponsors: Representative Longest.
Referred to:
*DRH40497 -NO-60A*
A BILL TO BE ENTITLED 1
AN ACT TO PREVENT ALGORITHMIC RENT FIXING IN THE RENTAL HOUSING 2
MARKET. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Chapter 42 of the General Statutes is amended by adding a new Article 5
to read: 6
"Article 8. 7
"Prevention of Algorithmic Rent Fixing. 8
"§ 42-80. Definitions. 9
The following definitions apply in this Article: 10
(1) Coordinate or coordinating function. – Any of the following with respect to a 11
service provider: 12
a. Collecting of historical or contemporaneous prices, price changes, 13
supply levels, occupancy rates, or lease or rental contract termination 14
and renewal dates of residential dwelling units from two or more real 15
estate lessors or from public databases. 16
b. Analyzing or processing of the information described in 17
sub-subdivision a. of this subdivision using a system, software, or 18
process that uses computation. 19
c. Recommending rental prices, lease terms, or occupancy levels to a real 20
estate lessor. 21
d. Using a pricing algorithm that uses, incorporates, or was trained with 22
nonpublic competitor data to set the amount of rent for a residential 23
dwelling unit or any other commercial term contained within a 24
residential rental agreement. 25
(2) Nonpublic competitor data. – Nonpublic data that is derived from or otherwise 26
provided by another person that competes in the same market as a person, or 27
a related market. This term does not include information distributed, reported, 28
or otherwise communicated in a way that does not reveal any underlying data 29
from a competitor, such as narrative industry reports, news reports, business 30
commentaries, or generalized industry survey results. 31
(3) Nonpublic data. – Information that is not widely available or easily accessible 32
to the public, including information about price, commercial terms, and 33
related products or services, regardless of whether the data is attributable to a 34
specific competitor or anonymized. 35
(4) Person. – As defined in G.S. 12-3. 36
H.B. 970
Apr 10, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH40497-NO-60A
(5) Pre-dispute arbitration agreement. – An agreement to arbitrate a dispute that 1
has not yet arisen at the time of the making of the agreement. 2
(6) Pre-dispute joint-action waiver. – An agreement, whether or not part of a 3
pre-dispute arbitration agreement that would prohibit, or waive the right of, 4
one of the parties to the agreement to participate in a joint, class, or collective 5
action in a judicial, arbitral, administrative, or other forum, concerning a 6
dispute that has not yet arisen at the time of the making of the agreement. 7
(7) Pricing algorithm. – Any process using calculations that analyzes data for the 8
purpose of recommending or setting prices or commercial terms, including 9
processes that utilize machine learning or other artificial intelligence 10
techniques. 11
(8) Real estate lessor. – Any individual, corporation, partnership, association, 12
joint-stock company, trust, or unincorporated organization that owns and 13
leases real property or any portion thereof in the form of a residential dwelling 14
unit. 15
(9) Residential dwelling unit. – Any house, apartment, accessory unit, or other 16
housing unit intended to be used as a person's primary residence. This term 17
does not include inpatient medical care, licensed long-term care, or detention 18
or correctional facilities. 19
(10) Service provider. – A person that provides a coordinating function for a real 20
estate lessor. 21
"§ 42-81. Unlawful coordination. 22
(a) It is unlawful for any real estate lessor, or any agent or subcontractor of a real estate 23
lessor, within North Carolina to subscribe to, contract for, or otherwise exchange anything of 24
value in return for coordinating functions. 25
(b) It is unlawful for any service provider to facilitate an agreement to not compete among 26
real estate lessors with respect to residential dwelling units within the State of North Carolina. 27
"§ 42-82. Enforcement. 28
(a) A violation of any provision of this Article constitutes an unfair or deceptive trade 29
practice under G.S. 75-1.1. Any party aggrieved by a violation of this Article may bring a cause 30
of action against the real estate lessor or service provider, as appropriate, and is entitled to the 31
relief available in Chapter 75 of the General Statutes. The Attorney General is hereby empowered 32
to enforce this Article as allowed by Chapter 75 of the General Statutes. 33
(b) Notwithstanding any other provision of law, at the election of the person alleging 34
conduct constituting a violation of this section, or the named representative of a class in a 35
collective action alleging such conduct, no pre-dispute arbitration agreement or pre-dispute 36
joint-action waiver shall be valid or enforceable with respect to a case which relates to a violation 37
of this Article." 38
SECTION 2. This act becomes effective October 1, 2025, and applies to acts or 39
omissions occurring on or after that date. 40