On March 25, 2025, the Colorado State Legislature introduced House Bill 1004, a significant piece of legislation aimed at regulating the use of algorithmic devices in the rental market. The bill seeks to address concerns over fairness and transparency in how rental prices and occupancy levels are determined, particularly in relation to the use of nonpublic competitor data.

The main provision of House Bill 1004 prohibits businesses that provide algorithmic services or products from using nonpublic competitor data in their calculations for setting or recommending rental amounts or occupancy levels for residential properties in Colorado. This measure is designed to prevent potential anti-competitive practices that could arise from the misuse of sensitive data, ensuring a more equitable rental market.

A violation of this provision is classified as an illegal restraint of trade under Colorado's antitrust laws, specifically punishable under the Colorado State Antitrust Act of 2023. However, the bill does allow for exceptions; businesses can provide estimates of rental amounts or occupancy levels using publicly available data, provided these estimates are offered to the public at no cost.

The introduction of House Bill 1004 has sparked notable debates among legislators and stakeholders in the housing market. Proponents argue that the bill is essential for protecting consumers and maintaining fair competition among rental service providers. Critics, however, express concerns that the restrictions could stifle innovation and limit the ability of businesses to utilize data effectively in a competitive market.

The implications of this bill extend beyond the immediate rental market. Economically, it could influence how rental prices are set and how competitive the market remains, potentially affecting housing affordability in Colorado. Socially, it aims to enhance transparency for renters, ensuring they are not subjected to unfair pricing practices based on proprietary data.

As the legislative process unfolds, experts suggest that the bill's passage could lead to significant changes in the rental landscape in Colorado, prompting other states to consider similar regulations. The ongoing discussions will likely focus on balancing the need for consumer protection with the desire for innovation in the housing sector.