A Bill for an Act
Page 1, Line 101Concerning pricing coordination by landlords.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill prohibits:
- A landlord or an agent, a representative, or a subcontractor of a landlord from subscribing to, contracting with, or otherwise exchanging any form of consideration in return for the services of a coordinator;
- A coordinator from facilitating an agreement among landlords that restricts competition with respect to dwelling units, which includes performing a coordinating function; or
- 2 or more landlords from engaging in consciously parallel pricing coordination.
A violation is deemed to be an illegal restraint of trade or commerce and is punishable in accordance with the "Colorado State Antitrust Act of 2023".
The division of housing within the department of local affairs is required to develop and undertake a public education program designed to inform Colorado residents of the provisions of the bill.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly
Page 2, Line 3finds that:
Page 2, Line 4(a) Agreements or conspiracies between competitors to fix prices
Page 2, Line 5or other commercial terms are illegal under current Colorado law, and
Page 2, Line 6algorithmic devices have made illegal agreements more challenging to
Page 2, Line 7detect; and
Page 2, Line 8(b) In recent years, several lawsuits have been filed alleging that
Page 2, Line 9the use of algorithmic devices by landlords to set prices and other
Page 2, Line 10commercial terms in the residential housing market results in higher rents
Page 2, Line 11and constrained housing supply for residential tenants; and
Page 2, Line 12(c) A recent White House study titled "The Cost of
Page 2, Line 13Anticompetitive Pricing Algorithms in Rental Housing" estimated that in
Page 2, Line 142023, the cost to renters of anticompetitive pricing was $3.8 billion, and
Page 2, Line 15the cost to renters in the Denver metro area was the second highest of any
Page 2, Line 16metro area in the country.
Page 2, Line 17(2) Therefore, the general assembly declares that, with certain
Page 2, Line 18exceptions, the distribution and use of an algorithmic device by a service
Page 2, Line 19provider or landlord to set rents and other certain commercial terms
Page 2, Line 20regarding the occupancy of rental housing is prohibited.
Page 3, Line 1SECTION 2. In Colorado Revised Statutes, add 38-12-703 as
Page 3, Line 2follows:
Page 3, Line 338-12-703. Determination of rent amount - sale, distribution,
Page 3, Line 4and use of algorithmic devices prohibited - illegal restraint of trade
Page 3, Line 5or commerce - definitions. (1) (a) The sale or distribution for
Page 3, Line 6consideration of an algorithmic device with the intent that it be
Page 3, Line 7used by two or more landlords in the same market or a related
Page 3, Line 8market to set or recommend the amount of rent, level of
Page 3, Line 9occupancy, or other commercial term associated with the
Page 3, Line 10occupancy of a residential premises is prohibited.
Page 3, Line 11(b) The use of an algorithmic device by a person to set or
Page 3, Line 12recommend the amount of rent, level of occupancy, or other
Page 3, Line 13commercial term associated with the occupancy of a residential
Page 3, Line 14premises is prohibited if the person knew or should have known
Page 3, Line 15that another person used the algorithmic device, or an
Page 3, Line 16algorithmic device trained on substantially similar data, to set
Page 3, Line 17or recommend the amount of rent, level of occupancy, or other
Page 3, Line 18commercial term associated with the occupancy of a residential
Page 3, Line 19premises in the same market or a related market.
Page 3, Line 20(c) A person engaged in the business of providing
Page 3, Line 21algorithmic device services or products that are used to set or
Page 3, Line 22recommend the amount of rent, level of occupancy, or other
Page 3, Line 23commercial term associated with the occupancy of a residential
Page 3, Line 24premises shall not use nonpublic competitor data pertaining to
Page 3, Line 25residential properties in Colorado in algorithmic calculations.
Page 3, Line 26(2) A violation of subsection (1) of this section is an
Page 3, Line 27illegal restraint of trade or commerce in violation of section
Page 4, Line 16-4-104 and is punishable in accordance with the "Colorado
Page 4, Line 2State Antitrust Act of 2023", article 4 of title 6.
Page 4, Line 3(3) As used in this section:
Page 4, Line 4(a) "Algorithmic device" means a device that uses one or
Page 4, Line 5more algorithms to perform calculations of data, including
Page 4, Line 6data concerning local or statewide rent amounts being charged
Page 4, Line 7to tenants by landlords, for the purpose of advising a landlord
Page 4, Line 8concerning the amount of rent, level of occupancy, or other
Page 4, Line 9commercial term associated with rental housing. "Algorithmic
Page 4, Line 10device":
Page 4, Line 11(I) Includes a product that incorporates an algorithmic
Page 4, Line 12device; and
Page 4, Line 13(II) Does not include:
Page 4, Line 14(A) A product that provides information to the public and
Page 4, Line 15not for the purpose of recommending or setting a commercial
Page 4, Line 16term by two or more persons in the same market or a related
Page 4, Line 17market, so long as the information was not trained using
Page 4, Line 18nonpublic competitor data; or
Page 4, Line 19(B) A product used for the purpose of establishing rent or
Page 4, Line 20income limits in accordance with the affordable housing
Page 4, Line 21program guidelines of the state, the federal government, a
Page 4, Line 22local government, or other political subdivision.
Page 4, Line 23(b) "Nonpublic competitor data" means nonpublic data,
Page 4, Line 24including information about actual rent prices, occupancy
Page 4, Line 25rates, lease start and end dates, and similar data, regardless of
Page 4, Line 26whether the data are attributable to a specific competitor or
Page 4, Line 27anonymized, that are derived from or otherwise provided by a
Page 5, Line 1person that competes in the same market, or in a related market,
Page 5, Line 2as another person.
Page 5, Line 3(c) "Nonpublic data" means information that is not widely
Page 5, Line 4available or easily accessible to the public, including
Page 5, Line 5public-facing data made available under terms of service that
Page 5, Line 6prohibit the use of that data.
Page 5, Line 7(d) "Rent" means the total amount of rent, including
Page 5, Line 8concessions and fees, that a residential tenant is required to
Page 5, Line 9pay pursuant to a rental agreement.
Page 5, Line 10SECTION 3. In Colorado Revised Statutes, add 6-4-123 as
Page 5, Line 11follows:
Page 5, Line 126-4-123. Pleading standards.A plaintiff plausibly pleads a
Page 5, Line 13violation of section 6-4-104 if the complaint contains factual
Page 5, Line 14allegations demonstrating that the existence of a contract,
Page 5, Line 15combination in the form of trust or otherwise, or conspiracy in
Page 5, Line 16restraint of trade or commerce is among the realm of plausible
Page 5, Line 17possibilities. A plaintiff need not allege facts tending to
Page 5, Line 18exclude the possibility of independent action.
Page 5, Line 19SECTION 4. Act subject to petition - effective date -
Page 5, Line 20applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 5, Line 21the expiration of the ninety-day period after final adjournment of the
Page 5, Line 22general assembly; except that, if a referendum petition is filed pursuant
Page 5, Line 23to section 1 (3) of article V of the state constitution against this act or an
Page 5, Line 24item, section, or part of this act within such period, then the act, item,
Page 5, Line 25section, or part will not take effect unless approved by the people at the
Page 5, Line 26general election to be held in November 2026 and, in such case, will take
Page 5, Line 27effect on the date of the official declaration of the vote thereon by the
Page 6, Line 1governor.
Page 6, Line 2(2) This act applies to conduct occurring on or after the applicable
Page 6, Line 3effective date of this act.