Texas House Bill HB2491

Texas 2025 - 89th Regular

• Filed: 2/5/25

Caption

Relating to the use of certain algorithmic devices in the determination of residential rental prices.

Impact

If enacted, HB2491 would amend existing laws to establish definitions and applications concerning algorithmic devices used in rental pricing. By making it illegal to utilize nonpublic competitor data for the purpose of advising landlords on rent setting, the bill may impact the business operations of firms providing analytical tools used in property management. Consequently, the law aims to mitigate the risks associated with algorithmic pricing that may disadvantage tenants through opaque pricing strategies.

Summary

House Bill 2491 proposes significant regulations around the use of algorithmic devices in determining residential rental prices in Texas. Specifically, it introduces new guidelines that prohibit the sale of algorithmic services intended to set or recommend rental prices based on certain data inputs. This bill focuses on protecting consumers from potentially unfair rental pricing practices driven by nonpublic competitor data that could skew rental price calculations against tenants. As such, the legislation aims to promote fairness and transparency in the rental market.

Contention

While proponents of HB2491 argue that it is necessary to protect tenants from potential abuses associated with algorithmically derived rental prices, there may be concerns from landlords or property management firms about the limitations placed on their ability to leverage data analytics in their pricing strategies. The restriction on using competitor data could be seen as a barrier to innovation or a hindrance to establishing competitive pricing structures that reflect market conditions.

Notable_points

Furthermore, violations of the stipulated regulations under the new chapter would classify as deceptive trade practices, warranting legal actions under Texas's existing trade practices laws. This aspect of the bill emphasizes the state's commitment to safeguarding consumer rights while aiming to regulate the real estate market's operation more closely.