Committee advances ordinance to ban algorithmic rent fixing; amendment adds private fee recovery

The Seattle City Council Housing & Human Services Committee voted June 11 to recommend passage of an ordinance that would prohibit algorithmic rent fixing by landlords and ban services that coordinate rental pricing across multiple properties.

Chair Cathy Moore, sponsor of Council Bill 121000, said she wanted prompt action: "I do have some sense of urgency around the issue," she said, describing the measure as a tool to combat what she called an anti‑competitive practice that "has an adverse effect on affordability." Moore moved the committee recommendation to pass the bill.

Council central staff summarized the measure. Tommaso Johnson, council central staff, said the ordinance defines "coordination" as automated, algorithmic analysis that uses public and private data to generate suggested lease terms, pricing and occupancy levels. The bill would prohibit landlords from using such coordination services and would also prohibit entities from offering coordination services to two or more landlords within city limits.

Enforcement would be both public and private. Johnson summarized the enforcement framework: the City Attorney would be authorized to seek civil penalties up to $7,500 per violation and reasonable costs and attorney fees, and the bill would create a private right of action for harmed individuals with damages capped at $7,500 per violation. The committee adopted Amendment 1, added at the suggestion of the City Attorney's Office, to expressly allow a prevailing private plaintiff to recover reasonable attorney's fees and costs.

Senator Solomon, the sponsor of a similar state bill, joined the committee by video and urged local action. "I don't really see why we need to have that kind of practice," Solomon said of algorithmic coordination; he described concerns that the software can create artificial vacancies and push up prices and urged the committee to act ahead of unresolved litigation: "This is a good time to do it, and I urge you to."

Public comment strongly favored the ordinance. Holly Willis, policy manager at the Coalition on Homelessness, and tenant‑advocacy groups delivering a coalition letter told the committee the software tools—cited in national reporting and in Department of Justice inquiry—contribute to rising rents and displacement. Speakers representing tenants' organizations and labor urged passage. Industry speakers urged caution and delay: Carl Charette, a developer with AvalonBay Communities, and Carter Nelson of the Washington Multifamily Housing Association asked the committee to delay a vote to allow more stakeholder input, saying the proposal could prevent property managers from using future or current technology to manage portfolios.

Committee members discussed legal and practical questions. Councilmember Saka noted federal antitrust law already outlaws collusion but said overlapping local protections are reasonable; Tommaso Johnson and the City Attorney's Office worked with state staff to align the local ordinance with the state substitute bill and to address enforceability. Councilmember Rink, a cosponsor, called the measure "a common sense measure to help protect renters," and noted Seattle's large renter population.

The committee adopted Amendment 1 and voted 4–0 (Councilmembers Rink, Saka, Vice Chair Solomon and Chair Moore) to recommend passage of Council Bill 121000 as amended; the committee report will go to the full council on June 17.

What the ordinance would do: It would make it unlawful for landlords to use algorithmic coordination services that combine public and private competitive information and apply automated analysis to generate suggested lease terms or occupancy-level strategies; it would prohibit providers offering such coordination services to multiple landlords within Seattle. It creates civil penalties up to $7,500 per violation and a private right of action with the same cap; the amendment added recovery of reasonable attorney's fees for prevailing private plaintiffs.

Context: The proposal tracks language from Substitute Senate Bill 5469, which passed the state senate earlier in the year but did not advance to the house floor after the Washington Attorney General filed litigation and the U.S. Department of Justice brought related actions. Council central staff said the state AG estimated roughly 800,000 leases statewide since 2017 had been priced using similar software. The committee cited other U.S. cities that have adopted or considered similar local prohibitions, including Berkeley, San Francisco, Minneapolis, Philadelphia, Portland, Jersey City, San Diego and others.

Next steps: The committee recommendation will be transmitted to full council; if the council passes the ordinance, affected parties could seek judicial review and enforcement will likely involve both the City Attorney and private plaintiffs.