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Jersey City council bans algorithmic rent‑fixing, adopts ordinance 25‑057
Summary
The Municipal Council unanimously approved an ordinance prohibiting landlords from using software that coordinates rents across competing properties, after a long public hearing and an amendment clarifying definitions and limited exemptions.
Jersey City Municipal Council voted unanimously Tuesday to adopt an ordinance banning the use of algorithmic tools that coordinate rent prices among competing landlords.
The ordinance, City Ordinance 25‑057 as amended, passed 9‑0. Councilmember Yousef Solomon moved the amendment that clarified the definition of prohibited "non‑public competitor information," exempted actions limited to multiple properties under a single owner, and defined coordinating to mean recommending prices to other lessors using proprietary data. Councilmember Daniel Rivera seconded the motion.
The measure seeks to stop software vendors and property owners from using shared, nonpublic data to align rents across buildings—practices speakers at the public hearing and the state attorney general have called a form of price fixing. "If you believe in the free market, you should oppose this algorithmic distortion of competition," said Anna Maria Hill, state director for SEIU Local 32BJ, during public comment.
Supporters said the ordinance is a narrow, local tool to protect tenants and workers while larger federal litigation proceeds. "These companies do not merely recommend prices — they have built systems that coordinate hikes across properties," said Kaleen Perez, a 32BJ member. Several tenants from Portside Towers and other buildings described steep, recent increases and tied them to automated pricing tools.
Opponents, including the Jersey City Apartment Owners Association, asked the council to refine language and enforcement mechanisms. Wendy Paul, representing owners and managers, warned the ordinance as drafted could create costly private litigation and argued the actual local use of such tools in the region may be limited.
Council members debated enforcement and loopholes. Council President Joyce Waterman said enforcement capacity is a concern: "My hope is that when this comes back we are really tight on the enforcement because if not, then it's just like another ordinance on the book and nothing is being done." Councilmember Solomon acknowledged the ordinance is not final and said further changes are expected by the June 11 meeting.
The ordinance was adopted with no recorded no votes. Councilmembers and members of the public urged the state legislature to take complementary action and pledged follow‑up local amendments to address enforcement, whistleblower protections and penalties.
City leaders and advocacy groups said the local ban aims to protect renters while broader cases brought by the New Jersey attorney general and federal authorities continue to unfold.
