AN ACT relating to the use of algorithmic devices in setting the amount of rent to be charged to a residential tenant.

2026 Regular Session Introduced by Nima Kulkarni

Prohibits landlords from using algorithmic devices to set or advise rent for residential units, banning external pricing tools for new leases.

to Judiciary (H)

#attorneygeneral #consumerprotection #landlordandtenant #realestate #scienceandtechnology #tradepracticesandretailing

Summary of HB 201 (2026 Session, Kentucky)

Purpose and intent

HB 201 seeks to prohibit the use of algorithmic devices in determining the amount of rent charged to residential tenants. The bill frames the prohibition as a response to concerns that landlords use software and algorithms to collude or coordinate rental pricing, potentially violating antitrust and consumer protection laws. It also notes ongoing legal actions and examples from other jurisdictions to justify the ban.

Key provisions and changes

Definition of algorithmic device (Section 1(1)): Creates a broad definition that includes any device or product utilizing one or more algorithms to analyze data about local or statewide rents to advise a landlord on the rent to charge. It excludes products designed and used internally by a landlord or its affiliates.

Prohibition on use (Section 1(2)): Prohibits a landlord from employing, using, or relying upon an algorithmic device, or causing another person to do so, in setting the rent for a dwelling unit.

Consequences and enforcement (Section 1(3)):

Violations are deemed unfair, false, misleading, or deceptive trade practices under the Kentucky Consumer Protection Act (KRS 367.170) and constitute an illegal restraint of trade or commerce under KRS 367.175.
The Attorney General’s consumer protection remedies, powers, and duties (KRS 367.110 to 367.300) apply to acts declared unlawful by the statute.

Effective date and applicability (Section 2): The ban applies to rent calculations for rental agreements executed on or after the Act’s effective date.

Who/what would be affected

Landlords of residential rental property: The primary targets of the prohibition, as they would be prohibited from using external or external-facing algorithmic pricing tools to set rent.

Algorithms and external pricing tools: Any non-internal, algorithm-based pricing tools used to suggest or fix rent amounts would be restricted.

Landlord-affiliates and third-party actors: Indirectly affected if they participate in using algorithmic devices to influence rent pricing for a landlord.

Procedural and timeline aspects

The act would become effective with rental agreements entered into on or after the effective date (the exact date is not provided in the text, but the clause indicates a post-enactment applicability for new leases).

Enforcement would fall under existing Kentucky consumer protection law, with potential Attorney General actions for violations.

Practical impact and considerations

The bill aims to curb perceived anticompetitive or deceptive pricing practices in residential rents by banning algorithmic pricing aids.

It creates a clear definition to distinguish between external algorithmic tools and internal, landlord-only systems.

If enacted, landlords would need to price rents based on traditional methods (e.g., market analyses, leases, comps) without relying on algorithmic devices that advise rent amounts.

Potential conflicts could arise for landlords who rely on data-driven yet manual pricing processes; they would need to ensure compliance with the new prohibitions.