Lawmakers in two of the largest states both passed laws curbing the use of algorithms to set prices. In California, AB325 limits the use of algorithmic price setting across all products and goes into effect in 2026.  In New York, the algorithms being targeted are those specifically used to set prices for rent, after consumer distrust and antitrust lawsuits regarding rental price setting by algorithms. 

California’s AB325 

AB325 amends the CA Cartwright Act, California’s principal antitrust law, to add new prohibitions on pooling data to set prices, and allows for plaintiffs to proceed in litigation as long as their allegations of coordination or collusion are plausible. 

The law makes it unlawful to distribute or use a “common pricing algorithm”, defined as when competitors pool data (either with each other or through a 3rd party). Competitors cannot use such a means to set or align prices, and cannot allow that data to be used to form recommendations by other parties as to the prices they should set.  This is not limited to landlord’s setting of rental prices, but any good and service where competitors have shared or pooled data. 

Regarding the filing of lawsuits and the pleading requirements for allegations of wrongdoing, prior to AB325 defendants had argued that plaintiffs should prove that the defendants didn’t or couldn’t have taken their actions independently.  After AB325 goes into effect, plaintiffs need to show only that it is plausible that the potential price fixing or price coordination occurred from the use of shared data. 

New York Bans Algorithmic Rent Price Collusion  

New York added a business law that it is unlawful to knowingly or with disregard facilitate an agreement among residential rental property owners or managers to not compete with respect on pricing.  This facilitation of potential collusion can be done by software, the operators of software, by data analyst services, or algorithmic pricing recommendations that assist in coordinating behavior. It is also an unlawful agreement for an owner to set or adjust rents, renewals, or other lease terms based on recommendations from a coordinating tool. 

The law was signed on October 16th, and goes into effect 60 days after its signing. 

The law prohibits the use of the algorithms to affect prices using a “coordinating function.” The statute defines it as a tool that (i) collects historical or contemporaneous price history from two or more owners/managers, (ii) analyzes or processes that information (including to train an algorithm), and (iii) offers recommendations on rental prices, renewal terms, or other lease terms. Products used to set rent or income limits for regulated or affordable housing programs (e.g., rent stabilization, ETPA, or government-administered affordable housing) are not considered to be a coordinating function. 

Price Algorithms in the News, and the Courts 

Price algorithms, especially those for setting of rent by landlords, has already made its way into both the public eye and U.S. courtrooms. 

In litigation against RealPage, plaintiffs allege that large property managers used RealPage revenue-management software and shared nonpublic data to coordinate rent increases. Preliminary settlements filed in October 2025 total over $140 million, including $50 million from Greystar, the largest apartment landlord in the United States. The settlement with Greystar would restrict sharing of nonpublic rental data in the future. 

Other states have potential laws being drafted by lawmakers, and it is not expected that California and New York will be the only states passing similar laws. 

Price-Fixing Law Firm 

Schneider Wallace Cottrell Kim has successfully pursued consumer protection through antitrust action for decades.  Schneider Wallace maintains offices in California, Texas, and D.C., and has antitrust specialist attorneys ready to offer a consultation if you believe price-fixing has occurred for a product or service you have bought or used. We are a national firm and, by partnering with local firms, we are able to assist clients in any jurisdiction.