SB559: SB559 "Fair Business Practices Act of 1975"; any person from facilitating noncompete agreements between residential rental property owners or managers, including by use of algorithmic coordinating functions; prohibit
Last action February 25, 2026 · Senate Read and Referred
A Georgia Senate bill would ban software or algorithm-based tools that help landlords coordinate rental prices, lease terms, or occupancy levels with each other, treating such coordination as an unfair trade practice.
In plain language
This bill targets a practice where landlords use shared data analytics or algorithmic software to set rental prices, lease terms, or occupancy levels in coordination with other landlords, rather than competing independently. Under current Georgia law, no specific provision addresses this kind of algorithmic price coordination in residential rental housing. The bill adds a new section to Georgia's Fair Business Practices Act of 1975 (O.C.G.A. § 10-1-393.22) making it an unlawful, unfair, and deceptive trade practice for anyone doing business in Georgia to knowingly or recklessly help residential rental property owners or managers avoid competing with each other, including by running software that collects data from multiple landlords and recommends pricing or lease terms. It also makes it unlawful for a landlord to actually set rents or lease terms based on such algorithmic recommendations. The law would take effect July 1, 2026, and apply to contracts and agreements entered into or effective on or after that date.
What the bill does
- Makes it illegal for any person or company doing business in Georgia to knowingly or recklessly facilitate noncompete agreements between residential landlords through software or algorithmic tools.
- Bans algorithmic devices or data analytics services that collect pricing, supply, and lease data from two or more unrelated landlords and use it to recommend rental terms.
- Makes it unlawful for a landlord to set or adjust rents, lease renewals, occupancy levels, or other lease terms based on recommendations from such software or algorithms.
- Exempts tools used solely to set rent or income limits under government-run affordable housing programs from being treated as unlawful coordinating functions.
- Sets the law's effective date as July 1, 2026, applying only to contracts and agreements made or effective on or after that date.
Who it affects
Residential landlords and property managers in Georgia, companies that sell rental pricing software or data analytics services to landlords, and tenants whose rent or lease terms could be affected by how landlords set prices. Affordable housing programs run by government agencies are specifically excluded.
Why it matters
If enacted, landlords and software companies could face liability under Georgia's consumer protection law for using shared data and algorithms to coordinate rents across multiple properties. This could change how some rental pricing software operates and how landlords use pricing recommendation tools day to day.
Key provisions
- Section 1 adds new Code section 10-1-393.22 to the Fair Business Practices Act of 1975, defining 'algorithm,' 'algorithmic device,' 'coordinating function,' 'residential dwelling unit,' and 'residential rental property owner or manager.'
- The definition of 'coordinating function' requires collecting data from at least two landlords not commonly owned, analyzing that data computationally, and recommending rental terms; government affordable housing rent-setting tools are excluded.
- Subsection (b) makes it an unfair trade practice for any business to knowingly or recklessly facilitate landlord noncompete agreements, including through algorithmic software.
- Subsection (c) makes it an unlawful agreement for a landlord to actually set or adjust rents or lease terms based on algorithmic recommendations.
- Subsection (d) clarifies the new section does not limit other parts of the Fair Business Practices Act, Georgia's landlord-tenant law (Chapter 7 of Title 44), or other state laws.
- Section 2 sets the effective date as July 1, 2026, applying to contracts and agreements entered into or effective on or after that date.
Status timeline
- Senate Read and Referred (Senate)
- Senate Hopper (Senate)
Sponsors
- Sheikh Rahman (D, SD-005)
- Donzella James (D, SD-028)
- Harold Jones (D, SD-022)
- Sonya Halpern (D, SD-039)
- Nikki Merritt (D, SD-009)
- Derek Mallow (D, SD-002)
- Tonya Anderson (D, SD-043)
- Ed Harbison (D, SD-015)
- Jaha Howard (D, SD-035)
- Freddie Sims (D, SD-012)
- Sally Harrell (D, SD-040)
- Elena Parent (D, SD-044)
- Kim Jackson (D, SD-041)
- Nan Orrock (D, SD-036)
- RaShaun Kemp (D, SD-038)
- Emanuel Jones (D, SD-010)
- Kenya Wicks (D, SD-034)
- Michael Rhett (D, SD-033)
- Randal Mangham (D, SD-055)
- Gail Davenport (D, SD-017)
- Josh McLaurin (D, SD-014)
- Nabilah Islam Parkes (D, SD-007)
- David Lucas (D, SD-026)
Topics
- rental housing
- landlord software
- consumer protection
- algorithmic pricing
- fair business practices