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Senate passes SB 52 to ban algorithmic rent‑setting that facilitates collusion
Summary
SB 52, sponsored by Sen. María Pérez, makes using algorithms to collude or artificially inflate rents unlawful and includes accountability mechanisms; the Senate passed the bill (Ayes 27, Noes 9).
The Senate approved SB 52, the “End AI Rent Hikes Act,” authored by Sen. María Pérez, which makes it unlawful to use algorithmic platforms and automated pricing tools to collude among landlords and artificially inflate rental prices.
“SB 52 will make using algorithms to collude and artificially inflate rental prices illegal in California,” Pérez said on the Senate floor, describing how some rent‑setting platforms aggregate and share competitive data to set prices across markets.
Pérez and backers said the bill responds to a growing industry practice in which landlords rely on AI‑driven pricing tools that can synchronize increases and reduce competition. The author and supporters framed SB 52 as a necessary modernization of antitrust enforcement in housing markets.
The roll call recorded on the floor shows the measure passed with a recorded tally of Ayes 27, Noes 9. Supporters emphasized immediate consumer protection, while opponents raised questions about enforcement mechanisms and overlap with existing antitrust law.
Next steps: The measure goes to the governor for signature. If enacted, the statute will provide state enforcement authorities and courts with specific prohibitions and remedies targeting automated, algorithm‑driven rent collusion.
