Earlier today the City Council voted 7-0 (with one abstention) to approve amended legislation prohibiting algorithmic rent fixing, to protect renters by fighting anti-competitive rent hikes in Seattle. Councilmember Cathy Moore (District 5) sponsored CB 121000, which prohibits landlords from using new software to set higher rents and creates penalties of up to $7500 per violation committed by a landlord. 

“Seattle continues to be in the midst of an affordability housing crisis, and we need to explore every reasonable, well-vetted tool that can help us prevent displacement,” said Councilmember Moore. “By prohibiting the use of this automated, predatory software, we can play a part in keeping rents more affordable. This is an easy ‘win’ for the city’s housing work, and I appreciate my colleagues joining me in passing this bill.”  

Background  

In the last few years, an increasing number of corporate landlords have utilized new software in order to set higher rents. This software enables anti-competitive collusion and price-setting. Cities like Berkeley, San Diego, San Francisco, Minneapolis, Philadelphia, Portland, and Jersey City have already passed similar prohibitions on these services. 

What the legislation does 

This ordinance ends algorithmic rent fixing by prohibiting the coordination and application of automated analysis on public/private residential housing market data to generate inflated recommendations on rent prices.   
 

What’s next 

CB 121000 now goes to the Mayor’s office for his signature. It becomes effective 30 days after his signed approval.

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