In an opinion Tuesday, Judge Caproni preliminarily enjoined New York’s Attorney General from enforcing a new law that bars landlords from setting rents based on recommendations from algorithmic pricing software, finding that RealPage, which licenses such software, is likely to succeed on its First Amendment challenge.
New York General Business Law § 340-B, enacted in 2025 to address rising rents and lengthy apartment vacancy periods, contains two operative provisions. Section 2 bars facilitating agreements among competing landlords not to compete on price, including through software. Section 3 separately makes it unlawful for residential landlords to set or adjust rents based on recommendations from software that performs a “coordinating function.” RealPage licenses AI-powered software that generates rent and occupancy recommendations for residential landlords. Since settling with the Department of Justice, RealPage transitioned away from using non-public data, except in limited circumstances. RealPage argued that the Statute violates the First Amendment by restricting protected speech in the form of algorithmically generated pricing recommendations.
Continue Reading Judge Caproni: NY Law Targeting AI Rent Recommendations Likely Sweeps Too Broadly