New York S7882 (felony to use algorithms to coordinate residential rents)
New York Landlord Algorithmic Pricing Law (Gen. Bus. Law 340-b; S7882)
New York · N.Y. Gen. Bus. Law 340-b (S7882, 2025)
- Status
- In effect
- Took effect
- December 15, 2025
- Applies to
- Residential rental property owners and managers, and any person or company that operates or licenses software, data-analytics services, or algorithmic rent-setting tools used to coordinate rents.
- Enforced by
- New York State Attorney General and criminal prosecutors (Class E felony).
This law makes it a crime to help residential landlords coordinate the rents they charge instead of competing with one another, including by operating or licensing software, a data-analytics service, or an algorithmic tool that performs a rent-setting coordination function across two or more landlords. The conduct must be done knowingly or recklessly. Violations are a Class E felony, with fines up to $1 million for a corporation and up to $100,000 or up to four years in prison for an individual.
Who is protected: Residential rental tenants in New York and the competitive residential rental market.
Legal detail
N.Y. Gen. Bus. Law 340-b (enacted via S7882, signed Oct 16, 2025 by Gov. Hochul, effective Dec 15, 2025) makes it unlawful to knowingly or recklessly facilitate an agreement among two or more residential rental property owners/managers not to compete on rents, including by operating or licensing software, a data-analytics service, or an algorithmic device performing a rent-setting coordinating function; a violation is a Class E felony. RealPage filed a First Amendment lawsuit to enjoin enforcement (Nov 2025); NY AG motion to dismiss filed Feb 27, 2026; the state put the law on hold while the court considered the case (Reuters). On Sept. 29, 2026 Judge Valerie Caproni granted a preliminary injunction against enforcement of Section 3 and denied the motion to dismiss, finding RealPage 'marginally' likely to succeed on its First Amendment claim (see RealPage v. James — NY algorithmic rent ban enjoined (2026)). Enforcement of the core provision is currently enjoined.
Key facts
| Jurisdiction | New York |
|---|---|
| Level | State |
| Strength | Moderate |
| Enacted | October 16, 2025 |
| Citation | N.Y. Gen. Bus. Law 340-b (S7882, 2025) |
| Penalties | Class E felony: corporations may be fined up to $1,000,000; individuals up to $100,000 and/or imprisonment up to four years. |
| Topics | automated decision-making · housing and credit decisions · consumer protection |
| Bill text | NY State Senate Bill 2025-S7882 |
More AI rules in New York
- NYDFS CL 7 (2024) — Insurance AI Anti-Discrimination · In effect
- NY Hochul EO — Statewide Data Center Moratorium (2026) · In effect
- New York Stealth Crawler Prohibition Act (2026) · Proposed / pending
- New York SAFE for Kids Act final rules (2026) · Enacted (not yet in effect)
- RealPage v. James — NY algorithmic rent ban enjoined (2026) · Blocked / in litigation
- NY PSC utility AI inquiry (Case 26-M-0552) · Enacted (not yet in effect)
Related automated decision-making rules elsewhere
- CA EO N-6-26 (AI Workforce) · In effect
- Arkansas public entity AI/ADS policy mandate (Act 848, 2025) · In effect
- Connecticut algorithmic rent ban — HB 8002 (eff. Jan 1, 2026) · In effect
- San Diego algorithmic rent price-fixing ban (Ord. O-21955, May 2025) · In effect
- Minneapolis algorithmic rent ban (Ord. 2025-010, eff. Mar 1, 2026) · In effect
- Seattle algorithmic rent-fixing ban (Ord. 127241 / SMC 7.34, July 2025) · In effect
See something wrong or out of date? Submit a correction. Every entry must carry a verifiable source.