House Bill No. 4538 amends the existing law regulating landlord-tenant relationships by introducing new provisions regarding the use of algorithmic pricing devices in rental agreements. The bill defines "algorithmic pricing device" as any tool that utilizes algorithms to calculate rental prices based on data, while explicitly excluding certain reports and products related to affordable housing. Additionally, the bill adds a new section (1e) that prohibits landlords from using these devices in conjunction with nonpublic competitor data to coordinate pricing or enter into agreements that restrain the rental housing market. Violations of this provision would be considered a breach of the Michigan antitrust reform act.

The title of the bill has been updated to reflect the prohibition of certain rent pricing devices, emphasizing the intent to regulate the use of algorithmic pricing in rental agreements. The bill also clarifies definitions related to landlords, tenants, rental agreements, and security deposits, ensuring that the language aligns with the new regulations. Overall, the bill aims to enhance transparency and fairness in the rental market by limiting the influence of algorithmic pricing on rent determinations.

Statutes affected:
House Introduced Bill: 554.601