SB 318: 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 share data on rents, vacancies, and lease terms so software can recommend coordinated pricing. It adds a new section (O.C.G.A. § 13-8-5) to Georgia's contract law making any agreement between two or more landlords to raise, lower, or otherwise manipulate rental prices an unenforceable contract in restraint of trade. Anyone who enters into, causes, or carries out such a 'coordinating function,' including a landlord using the tool for their own properties, faces a $1,000 civil penalty per violation, collectible by the Attorney General or a district attorney. The Department of Community Affairs must publish educational materials explaining the law to residents. The law would take effect as soon as the Governor signs it or it becomes law without a signature, and it would apply to rental agreements entered into, renewed, or extended on or after that date. The bill exempts government actions taken under affordable or low-income housing programs.

• Creates a new Georgia code section declaring agreements among landlords to coordinate rental prices unenforceable contracts in restraint of trade.
• Defines 'coordinating function' to cover collecting rental data from multiple landlords, processing it with software or AI, and recommending prices or occupancy levels.
• Imposes a $1,000 civil penalty per violation on anyone who enters into or carries out a price-coordination agreement, including landlords acting for their own benefit.
• Authorizes the Attorney General or any district attorney to sue in court to collect the civil penalty.
• Directs the Department of Community Affairs to create and publish materials explaining the law to Georgia residents.
• Exempts actions taken under federal or state affordable or low-income housing programs from the new restrictions.

Residential landlords, property managers, and agents who use shared pricing data or software to set rents; companies that provide rental pricing algorithms or data analytics services to multiple landlords; tenants renting residential property in Georgia; and the Attorney General, district attorneys, and the Department of Community Affairs, which enforce and explain the law.

If enacted, landlords using shared data or algorithmic tools to align rents across multiple properties could face legal unenforceability of those agreements and a $1,000 penalty per violation, potentially changing how rental pricing software and data-sharing arrangements operate in Georgia's rental market.

• Section 1 adds O.C.G.A. § 13-8-5, defining key terms like 'coordinating function,' 'coordinator,' 'landlord,' 'parallel pricing coordination,' and 'rental price.'
• Subsection (b) bans entering into or performing a coordinating function for parallel pricing coordination agreements and sets a $1,000 civil penalty per violation, enforceable by the Attorney General or a district attorney.
• Subsection (c) requires the Department of Community Affairs to develop and publish educational materials on the new law.
• Subsection (d) exempts actions taken under federal or state affordable or low-income housing laws or programs.
• Section 2 makes the law effective upon the Governor's signature or becoming law without signature, applying to agreements entered, renewed, or modified on or after that date.

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

• Nikki Merritt (D, SD-009)Patrocinador principal
• 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 housing
• landlord regulations
• price coordination
• artificial intelligence in housing
• consumer protection