North Carolina 2025-2026 Regular Session

North Carolina House Bill H970 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 970
	3	+	H D
	4	+	HOUSE BILL DRH40497-NO-60A
	5	+
5	6
6	7
7	8		Short Title: Preventing Algorithmic Rent Fixing. (Public)
8		-	Sponsors: Representatives Longest, Lopez, Morey, and Prather (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	April 14, 2025
12		-	H970 -v-1
	9	+	Sponsors: Representative Longest.
	10	+	Referred to:
	11	+
	12	+	DRH40497 -NO-60A
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO PREVENT ALGORITHMIC RENT FIXING IN THE RENTAL HOUSING 2
15	15		MARKET. 3
16	16		The General Assembly of North Carolina enacts: 4
17	17		SECTION 1. Chapter 42 of the General Statutes is amended by adding a new Article 5
18	18		to read: 6
19	19		"Article 8. 7
20	20		"Prevention of Algorithmic Rent Fixing. 8
21	21		"§ 42-80. Definitions. 9
22	22		The following definitions apply in this Article: 10
23	23		(1) Coordinate or coordinating function. – Any of the following with respect to a 11
24	24		service provider: 12
25	25		a. Collecting of historical or contemporaneous prices, price changes, 13
26	26		supply levels, occupancy rates, or lease or rental contract termination 14
27	27		and renewal dates of residential dwelling units from two or more real 15
28	28		estate lessors or from public databases. 16
29	29		b. Analyzing or processing of the information described in 17
30	30		sub-subdivision a. of this subdivision using a system, software, or 18
31	31		process that uses computation. 19
32	32		c. Recommending rental prices, lease terms, or occupancy levels to a real 20
33	33		estate lessor. 21
34	34		d. Using a pricing algorithm that uses, incorporates, or was trained with 22
35	35		nonpublic competitor data to set the amount of rent for a residential 23
36	36		dwelling unit or any other commercial term contained within a 24
37	37		residential rental agreement. 25
38	38		(2) Nonpublic competitor data. – Nonpublic data that is derived from or otherwise 26
39	39		provided by another person that competes in the same market as a person, or 27
40	40		a related market. This term does not include information distributed, reported, 28
41	41		or otherwise communicated in a way that does not reveal any underlying data 29
42	42		from a competitor, such as narrative industry reports, news reports, business 30
43	43		commentaries, or generalized industry survey results. 31
44	44		(3) Nonpublic data. – Information that is not widely available or easily accessible 32
45	45		to the public, including information about price, commercial terms, and 33
46	46		related products or services, regardless of whether the data is attributable to a 34
47		-	specific competitor or anonymized. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 970-First Edition
49		-	(4) Person. – As defined in G.S. 12-3. 1
50		-	(5) Pre-dispute arbitration agreement. – An agreement to arbitrate a dispute that 2
51		-	has not yet arisen at the time of the making of the agreement. 3
52		-	(6) Pre-dispute joint-action waiver. – An agreement, whether or not part of a 4
53		-	pre-dispute arbitration agreement that would prohibit, or waive the right of, 5
54		-	one of the parties to the agreement to participate in a joint, class, or collective 6
55		-	action in a judicial, arbitral, administrative, or other forum, concerning a 7
56		-	dispute that has not yet arisen at the time of the making of the agreement. 8
57		-	(7) Pricing algorithm. – Any process using calculations that analyzes data for the 9
58		-	purpose of recommending or setting prices or commercial terms, including 10
59		-	processes that utilize machine learning or other artificial intelligence 11
60		-	techniques. 12
61		-	(8) Real estate lessor. – Any individual, corporation, partnership, association, 13
62		-	joint-stock company, trust, or unincorporated organization that owns and 14
63		-	leases real property or any portion thereof in the form of a residential dwelling 15
64		-	unit. 16
65		-	(9) Residential dwelling unit. – Any house, apartment, accessory unit, or other 17
66		-	housing unit intended to be used as a person's primary residence. This term 18
67		-	does not include inpatient medical care, licensed long-term care, or detention 19
68		-	or correctional facilities. 20
69		-	(10) Service provider. – A person that provides a coordinating function for a real 21
70		-	estate lessor. 22
71		-	"§ 42-81. Unlawful coordination. 23
72		-	(a) It is unlawful for any real estate lessor, or any agent or subcontractor of a real estate 24
73		-	lessor, within North Carolina to subscribe to, contract for, or otherwise exchange anything of 25
74		-	value in return for coordinating functions. 26
75		-	(b) It is unlawful for any service provider to facilitate an agreement to not compete among 27
76		-	real estate lessors with respect to residential dwelling units within the State of North Carolina. 28
77		-	"§ 42-82. Enforcement. 29
78		-	(a) A violation of any provision of this Article constitutes an unfair or deceptive trade 30
79		-	practice under G.S. 75-1.1. Any party aggrieved by a violation of this Article may bring a cause 31
80		-	of action against the real estate lessor or service provider, as appropriate, and is entitled to the 32
81		-	relief available in Chapter 75 of the General Statutes. The Attorney General is hereby empowered 33
82		-	to enforce this Article as allowed by Chapter 75 of the General Statutes. 34
83		-	(b) Notwithstanding any other provision of law, at the election of the person alleging 35
84		-	conduct constituting a violation of this section, or the named representative of a class in a 36
85		-	collective action alleging such conduct, no pre-dispute arbitration agreement or pre-dispute 37
86		-	joint-action waiver shall be valid or enforceable with respect to a case which relates to a violation 38
87		-	of this Article." 39
88		-	SECTION 2. This act becomes effective October 1, 2025, and applies to acts or 40
89		-	omissions occurring on or after that date. 41
	47	+	specific competitor or anonymized. 35
	48	+	(4) Person. – As defined in G.S. 12-3. 36
	49	+	H.B. 970
	50	+	Apr 10, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH40497-NO-60A
	53	+	(5) Pre-dispute arbitration agreement. – An agreement to arbitrate a dispute that 1
	54	+	has not yet arisen at the time of the making of the agreement. 2
	55	+	(6) Pre-dispute joint-action waiver. – An agreement, whether or not part of a 3
	56	+	pre-dispute arbitration agreement that would prohibit, or waive the right of, 4
	57	+	one of the parties to the agreement to participate in a joint, class, or collective 5
	58	+	action in a judicial, arbitral, administrative, or other forum, concerning a 6
	59	+	dispute that has not yet arisen at the time of the making of the agreement. 7
	60	+	(7) Pricing algorithm. – Any process using calculations that analyzes data for the 8
	61	+	purpose of recommending or setting prices or commercial terms, including 9
	62	+	processes that utilize machine learning or other artificial intelligence 10
	63	+	techniques. 11
	64	+	(8) Real estate lessor. – Any individual, corporation, partnership, association, 12
	65	+	joint-stock company, trust, or unincorporated organization that owns and 13
	66	+	leases real property or any portion thereof in the form of a residential dwelling 14
	67	+	unit. 15
	68	+	(9) Residential dwelling unit. – Any house, apartment, accessory unit, or other 16
	69	+	housing unit intended to be used as a person's primary residence. This term 17
	70	+	does not include inpatient medical care, licensed long-term care, or detention 18
	71	+	or correctional facilities. 19
	72	+	(10) Service provider. – A person that provides a coordinating function for a real 20
	73	+	estate lessor. 21
	74	+	"§ 42-81. Unlawful coordination. 22
	75	+	(a) It is unlawful for any real estate lessor, or any agent or subcontractor of a real estate 23
	76	+	lessor, within North Carolina to subscribe to, contract for, or otherwise exchange anything of 24
	77	+	value in return for coordinating functions. 25
	78	+	(b) It is unlawful for any service provider to facilitate an agreement to not compete among 26
	79	+	real estate lessors with respect to residential dwelling units within the State of North Carolina. 27
	80	+	"§ 42-82. Enforcement. 28
	81	+	(a) A violation of any provision of this Article constitutes an unfair or deceptive trade 29
	82	+	practice under G.S. 75-1.1. Any party aggrieved by a violation of this Article may bring a cause 30
	83	+	of action against the real estate lessor or service provider, as appropriate, and is entitled to the 31
	84	+	relief available in Chapter 75 of the General Statutes. The Attorney General is hereby empowered 32
	85	+	to enforce this Article as allowed by Chapter 75 of the General Statutes. 33
	86	+	(b) Notwithstanding any other provision of law, at the election of the person alleging 34
	87	+	conduct constituting a violation of this section, or the named representative of a class in a 35
	88	+	collective action alleging such conduct, no pre-dispute arbitration agreement or pre-dispute 36
	89	+	joint-action waiver shall be valid or enforceable with respect to a case which relates to a violation 37
	90	+	of this Article." 38
	91	+	SECTION 2. This act becomes effective October 1, 2025, and applies to acts or 39
	92	+	omissions occurring on or after that date. 40