HB 4538 Summary (Michigan)
Overview
- Purpose: Prohibit the use of certain algorithmic pricing devices by landlords that rely on nonpublic competitor data to set or advise on rent amounts. The bill would amend the state’s landlord-tenant law (1972 PA 348) to add a prohibition on these pricing tools and to clarify related definitions.
- Scope: Applies to rental housing relationships between landlords and tenants and targets algorithmic pricing devices used to coordinate or restrain rental pricing practices.
What the bill would do
- Add section 1e to the existing law to bar landlords from using, incorporating, or training an algorithmic pricing device with nonpublic competitor data for the purpose of advising rent to a tenant or prospective tenant.
- Specifically prohibit:
- Coordinating price, supply, or other rental housing information among two or more landlords.
- Entering into any agreement or contract with other landlords that restrains the rental housing market.
- Violation: A breach of subsection (1e) would constitute a violation of Michigan’s Antitrust Reform Act (PA 274, MCL 445.771–445.788).
Key definitions (Section 1)
- Algorithmic pricing device: A device that uses one or more algorithms to calculate data about local or statewide rents to advise a landlord on rent amounts. Includes services/products that incorporate such a device.
- Exclusions:
- Periodic (not more than monthly) reports by a trade association that collect tenant data and publish it in aggregated, anonymous form.
- Tools used to establish rent or income limits under affordable housing program guidelines of local, state, federal, or subdivision programs.
- Nonpublic competitor data: Information not broadly accessible to the public (e.g., actual rent prices, occupancy rates, start/end dates) derived from or provided by a market competitor.
- Landlord, rental unit, rental agreement, security deposit, source of income, and tenant definitions mirror the current statute, with clarifications to how “source of income” is treated for housing programs.
Affected parties
- Landlords and rental property managers who use pricing software or data to set or influence rents.
- Prospective tenants and current tenants who may be affected by pricing practices.
- Market participants in the rental housing sector (to the extent they share data or coordinate pricing).
Procedural and timeline notes
- Introduced: June 3, 2025 (Rep. Rheingans and co-sponsors).
- Initial referrals: Referred to Committee on Communications and Technology; later actions show movement toward Regulatory Reform.
- Committee activity: Public hearing held May 8, 2025; testimony recorded; bill left pending in committee on that date.
- Current status (as listed): Referred to Committee on Regulatory Reform.
- Note: The bill’s status and committee assignments may continue to evolve as it moves through the legislative process.
Impact considerations
- If enacted, landlords would need to reassess or discontinue use of algorithmic pricing tools that rely on nonpublic competitor data to determine rents.
- Could strengthen antitrust protections in housing markets by preventing collusive or coordination-based pricing practices among landlords.
- Exclusions ensure some data products (e.g., aggregated reports, certain affordable housing tools) remain usable.
