No Pricing Coordination Between Landlords

The bill prohibits:

• A landlord or an agent, a representative, or a subcontractor of a landlord from subscribing to, contracting with, or otherwise exchanging any form of consideration in return for the services of a coordinator;
• A coordinator from facilitating an agreement among landlords that restricts competition with respect to dwelling units, which includes performing a coordinating function; or
• 2 or more landlords from engaging in consciously parallel pricing coordination.

The bill prohibits the sale or distribution for consideration of an algorithmic device if:

• The algorithmic device is sold or distributed with the intent that it will be used by 2 or more landlords in the same market or a related market to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises; and
• The device sets or recommends the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises based on data or analysis that is similar for each landlord.

The bill also prohibits the use of an algorithmic device by a person to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises if:

• The person knew or should have known that another person used the algorithmic device to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises; and
• The circumstances suggest that the person adhered to or participated in a scheme to fix the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises.

The bill also prohibits a person engaged in the business of providing algorithmic device services or products that are used to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises from using nonpublic competitor data pertaining to residential properties in Colorado in algorithmic calculations.

A violation is deemed to be an illegal restraint of trade or commerce and is punishable in accordance with the "Colorado State Antitrust Act of 2023".

The division of housing within the department of local affairs is required to develop and undertake a public education program designed to inform Colorado residents of the provisions of the bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)