SB318: SB318 Contracts; certain agreements involving parallel pricing coordination as unenforceable contracts in general restraint of trade with respect to residential rental properties; prohibit

This bill targets a practice sometimes called algorithmic rent-setting, where landlords use pricing software or shared data to coordinate rents rather than setting prices independently. It adds a new section to Georgia's contracts law (O.C.G.A. § 13-8-5) that makes any agreement involving 'parallel pricing coordination' between two or more landlords an unenforceable contract in general restraint of trade. The bill defines key terms broadly, including 'coordinating function' (collecting rental data and using software, including AI or machine learning, to recommend prices or occupancy levels) and 'coordinator' (anyone who runs such a system). Violators face a $1,000 civil penalty per violation, collectible by the Attorney General or a district attorney. The Department of Community Affairs must publish materials explaining the law to residents. The law would exempt actions taken under federal or state affordable housing programs, and it would take effect immediately upon the Governor's signature, applying to agreements entered into, renewed, or modified on or after that date.

• Makes any agreement between two or more landlords to coordinate rental prices through data-sharing or software an unenforceable contract under Georgia law.
• Creates a $1,000 civil penalty per violation, enforceable by the Attorney General or a district attorney in court.
• Defines 'coordinating function' to cover software or AI systems that collect rental data from multiple landlords and recommend prices or occupancy levels.
• Requires the Department of Community Affairs to create and publish educational materials explaining the new rules to Georgia residents.
• Exempts actions taken under federal or state affordable or low-income housing programs from the new restrictions.

Landlords and property managers of residential rentals in Georgia, companies that provide rental pricing software or data analytics services, tenants who rent residential properties, and state officials such as the Attorney General, district attorneys, and the Department of Community Affairs.

If landlords use shared data or software to align rents rather than competing independently, tenants could face higher or less competitive pricing. This bill would let the state void such arrangements and fine participants, potentially affecting how rental pricing software is used in Georgia's housing market.

• Section 1 adds new Code Section 13-8-5, defining terms such as 'coordinating function,' 'coordinator,' 'landlord,' and 'parallel pricing coordination.'
• Subsection (b) prohibits entering into or performing a coordinating function for a parallel pricing coordination agreement and sets a $1,000 civil penalty per violation.
• Subsection (b) specifies the penalty is recoverable in civil court by the Attorney General or any district attorney.
• Subsection (c) requires the Department of Community Affairs to develop and publish public educational materials about the law.
• Subsection (d) exempts actions taken under federal or state affordable or low-income housing laws or programs.
• Section 2 sets the effective date as the date of the Governor's approval (or becoming law without approval), applying to agreements entered into or renewed after that date.

1. 2025-03-04Senate Read and Referred (Senate)
2. 2025-03-03Senate Hopper (Senate)

• Nikki Merritt (D, SD-009)Primary sponsor
• Nabilah Islam Parkes (D, SD-007)
• Derek Mallow (D, SD-002)
• Harold Jones (D, SD-022)
• Sally Harrell (D, SD-040)
• Kenya Wicks (D, SD-034)
• Sonya Halpern (D, SD-039)
• Elena Parent (D, SD-044)
• Kim Jackson (D, SD-041)
• RaShaun Kemp (D, SD-038)

• rental prices
• landlord regulation
• housing law
• antitrust
• tenant rights