Requirement to disclose algorithmic price fixing in the housing market

(a)

Requirement To disclose algorithmic price fixing

A person that uses an algorithm to recommend or set prices for rental accommodation shall clearly disclose that an algorithm was used to set monthly rates. (b)

Enforcement by Federal Trade Commission

(1)

Unfair or deceptive acts or practices

A violation of subsection (a) or a regulation promulgated under such subsection shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices. (2)

Powers of Commission

The Federal Trade Commission shall enforce subsection (a) and any regulation promulgated under such subsection in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this section. Any person who violates such subsection or a regulation promulgated under such subsection shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (c)

Actions by States

(1)

In general

In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate State court to— (A)enjoin such act or practice; (B)enforce compliance with such subsection or such regulation; (C)obtain damages, restitution, or other compensation on behalf of residents of the State; or (D)obtain such other legal and equitable relief as the court may consider to be appropriate. (2)

Notice

Before filing an action under this subsection, the attorney general, official, or agency of the State involved shall provide to the Federal Trade Commission a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Federal Trade Commission immediately upon the filing of the action. (3)

Authority of Federal Trade Commission

(A)

In general

On receiving notice under paragraph (2) of an action under this subsection, the Federal Trade Commission shall have the right— (i)to intervene in the action; (ii)upon so intervening, to be heard on all matters arising therein; and (iii)to file petitions for appeal. (B)

Limitation on State action while Federal action is pending

If the Federal Trade Commission or the Attorney General of the United States has instituted a civil action for violation of subsection (a) or a regulation promulgated under such subsection (referred to in this subparagraph as the Federal action), no State attorney general, official, or agency may bring an action under this subsection during the pendency of the Federal action against any defendant named in the complaint in the Federal action for any violation of such subsection or regulation alleged in such complaint. (4)

Rule of construction

For purposes of bringing a civil action under this subsection, nothing in this Act may be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence. (d)

Private right of action

(1)

In general

A person injured by an act or practice in violation of subsection (a) or a regulation promulgated under such subsection may bring in an appropriate district court of the United States— (A) an action to enjoin the violation; (B) an action to recover damages for actual monetary loss from the violation, or to receive not less than $10,000 in damages for each such violation, whichever is greater; or (C) both such actions. (2)

Costs and attorney’s fees

The court shall award to a prevailing plaintiff in an action under this subsection the costs of such action and reasonable attorney’s fees, as determined by the court. (3)

Limitation

An action may be commenced under this subsection not later than 2 years after the date on which the person first discovered or had a reasonable opportunity to discover the violation. (4)

Nonexclusive remedy

The remedy provided by this subsection shall be in addition to any other remedies available to the person. (e)

Definitions

In this section: (1)

Commission

The term Commission means the Federal Trade Commission. (2)

Pricing algorithm

The term pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term.