Prohibits use of algorithm or artificial intelligence to set residential rental amounts and prohibits landlord price fixing of residential rents. Violations constitute a deceptive trade practice and violators are subject to civil suit.
Impact
The implications of S2892 are significant, as it directly modifies the Residential Landlord and Tenant Act by adding a prohibition against algorithm-based rent setting and price fixing. This amendment is intended to create a more equitable rental market, ensuring that tenants are not subjected to unfair pricing strategies that could arise from pooled rental data or automated assessments. Furthermore, the bill provides legal safeguards for tenants, allowing those harmed by these practices to pursue civil remedies including treble damages, thus enhancing tenant rights.
Summary
Bill S2892 aims to protect tenants in Rhode Island by prohibiting landlords from using algorithms or artificial intelligence to determine rental amounts for residential properties. The bill specifically addresses practices that could lead to price fixing among landlords, emphasizing the importance of fair and transparent rental pricing. By restricting the methodology landlords can use to set rents, the legislation seeks to prevent potential exploitation that could arise from automated decision-making processes, which could adversely affect rent affordability for tenants.
Contention
Discussions around S2892 may arise concerning the balance between protecting tenant rights and allowing landlords to effectively manage their properties. Proponents argue that the bill is a necessary measure to curb predatory pricing behavior that can stem from algorithmic systems. However, opponents may raise concerns about the practicalities of enforcing such regulations and the impacts it could have on landlords' ability to set competitive rental prices. There could be worries regarding whether this law might inadvertently constrain landlords' operational flexibility, as they would need to navigate complex compliance issues while ensuring that housing remains available and affordable.