Prohibition of Anti-Competitive Automated Rent Price-Fixing Ordinance

Effective June 12, 2025, it is unlawful to use a software program that uses nonpublic competitor data to set rents or occupancy levels for properties within the City of San Diego. SCRHA worked to ensure that software platforms that include algorithmic devices aren’t banned all-together. For those who use such platforms, it is recommended you check with your legal counsel to ensure you are in compliance with the ordinance.  

Use and Sale of Algorithmic Devices Prohibited 

  • It is unlawful for a person to sell, license, or otherwise provide an algorithmic device to a landlord. 

  • It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential rental property.  

    • For each month a violation exists or continues, and for each residential rental property a landlord uses an algorithmic device, it shall constitute a separate and distinct violation. 

Definitions 

Algorithmic device means a software or product that uses or incorporates one or more algorithms to perform calculations of nonpublic competitor data of two or more landlords to advise a landlord on, or recommend to a landlord, rental rates or occupancy levels that may be achieved for a residential rental property in the City of San Diego. Algorithmic device does not include the following: 

  • A software or product used by a person to publish reports regarding rental rates or occupancy levels from aggregated historical nonpublic competitor data that is more than 90 days old, or from information available to the general public, and does not recommend rental rates or occupancy levels for future residential rental property leases or renewals. 

  • A software or product used by a person to establish rental rates or income limits in accordance with local, state, or federal affordable housing program guidelines.  

  • A software or product used by a person conducting an appraisal that does not recommend rental rates during the runtime operation of the software or product. 

Nonpublic competitor data means information that is not available to the general public, whether the information is attributable to a specific competitor or anonymized or whether the information is derived from or otherwise provided by another person. Nonpublic competitor data includes information about actual rental rates, rental rate changes, residential rental property supply levels, occupancy levels, or lease start and end dates.