Colorado Assembly enacts law banning algorithmic price fixing by landlords

Colorado's House Bill 1004 is making waves as it seeks to tackle the rising issue of algorithmic pricing in the rental housing market. Introduced on March 26, 2025, the bill aims to prohibit landlords from using algorithmic devices to set rents and other commercial terms, a practice that has been linked to inflated housing costs and limited availability for tenants.

The legislation comes in response to alarming findings from a recent White House study, which estimated that anticompetitive pricing algorithms cost renters a staggering $3.8 billion in 2023 alone, with the Denver metro area suffering the second-highest impact in the nation. The bill's proponents argue that these algorithms make it easier for landlords to engage in price-fixing without detection, ultimately harming renters and exacerbating the housing crisis.

Key provisions of House Bill 1004 include a ban on the use of algorithmic devices for pricing coordination among landlords, categorizing violations as illegal restraints of trade under the Colorado State Antitrust Act of 2023. Additionally, the bill mandates the division of housing within the Department of Local Affairs to launch a public education campaign to inform residents about the new regulations.

While the bill has garnered support from tenant advocacy groups, it faces opposition from some landlords and real estate associations who argue that such restrictions could hinder their ability to manage properties effectively and respond to market demands. Debates surrounding the bill have highlighted concerns about balancing fair pricing with the need for landlords to remain competitive.

As the Colorado State Legislature continues to deliberate on House Bill 1004, its implications could reshape the rental landscape in the state. If passed, the bill could serve as a model for other states grappling with similar issues, potentially leading to a significant shift in how rental prices are determined and enforced. The outcome of this legislation will be closely watched as it unfolds, with the potential to impact millions of renters across Colorado.