Existing law governs the hiring of residential dwelling units and requires a landlord to provide specified notice to tenants prior to an increase in rent. Existing law, the Costa-Hawkins Rental Housing Act, prescribes statewide limits on the application of local rent control with regard to certain properties. That act, among other things, authorizes an owner of residential real property to establish the initial and all subsequent rental rates for a dwelling or unit that meets specified criteria, subject to certain limitations.
This bill would make it unlawful for any person to sell, license, or otherwise provide to 2 or more persons a rental pricing algorithm, as defined, with the intent that it be used by 2 or more persons, as specified, to set rental rates, lease terms, or occupancy rates for residential premises. The bill would make it unlawful for any person to use a rental pricing algorithm to set rental rates, lease terms, or occupancy levels for residential premises if the person knew or should have known that another person in the same or related market used or will use the rental pricing algorithm to set rental rates, lease terms, or occupancy rates for residential premises. The bill would also prohibit a person engaged in the business of providing a rental pricing algorithm that is used to set rental rates, lease terms, or occupancy rates for residential premises and that is not otherwise prohibited under these provisions from using nonpublic competitor data, as defined, pertaining to residential premises in the state.
Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts. Under existing law, a violation of the Cartwright Act is punishable as a crime. The Unfair Competition Law makes various practices unlawful and provides that a person who engages, has engaged, or proposes to engage in unfair competition is liable for a civil penalty, as specified.
This bill would authorize the Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located, to file a civil action for a violation of the bill, as specified, and would authorize a person to file a civil action for a violation of the bill, as specified. The bill would provide that a violation of its provisions is an unlawful restraint on competition within the meaning of the Cartwright Act and an act of unfair competition in violation of the Unfair Competition Law. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.