N.Y. General Business Law § 340-b: Agreements to not compete with respect to residential rental dwelling units

§ 340-b. Agreements to not compete with respect to residential rental

dwelling units. 1. As used in this section, the following terms shall

have the following meanings:

(a) "Algorithm" means a computational process that uses a set of rules

to define a sequence of operations.

(b) "Algorithmic device" means any machine, device, computer program

or computer software that on its own or with human assistance performs a

coordinating function.

(c) "Coordinating function" means performing all of the following

subfunctions, provided, however, that a product used for the purpose of

establishing rent or income limits in accordance with the emergency

tenant protection act of nineteen seventy-four, as amended, the rent

stabilization law of nineteen sixty-nine, as amended, the city rent and

rehabilitation law, the emergency housing rent control law, or an

affordable housing program administered by a federal, state, or local

government or other political subdivision shall not be considered to be

performing a coordinating function:

(i) collecting historical or contemporaneous prices, supply levels, or

lease or rental contract termination and renewal dates of residential

dwelling units from two or more residential rental property owners or

managers, provided that at least two such residential rental property

owners or managers are not wholly-owned subsidiaries of the same parent

entity or otherwise owned or managed by the same residential rental

property owner or manager;

(ii) analyzing or processing the information described in subparagraph

(i) of this paragraph using a system, software, or process that uses

computation, including by using that information to train an algorithm;

and

(iii) recommending rental prices, lease renewal terms, ideal occupancy

levels, or other lease terms and conditions to a residential rental

property owner or manager.

(d) "Residential rental property owner or manager" means any

individual or entity that owns or is a beneficial owner of, directly or

indirectly, in whole or in part, or manages one or more residential

rental dwelling units in New York state.

2. It shall be an unlawful violation of this article for a person or

entity to knowingly or with reckless disregard facilitate an agreement

between or among two or more residential rental property owners or

managers to not compete with respect to residential rental dwelling

units, including by operating or licensing a software, data analytics

service, or algorithmic device that performs a coordinating function on

behalf of or between and among such residential rental property owners

or managers.

3. It shall be considered an unlawful agreement in violation of this

article for a residential rental property owner or manager to knowingly

or with reckless disregard set or adjust rental prices, lease renewal

terms, occupancy levels, or other lease terms and conditions in one or

more of their residential rental properties based on recommendations

from a software, data analytics service, or algorithmic device

performing a coordinating function.

4. Nothing in this section shall impair or limit the applicability of

any other part of this article or any other state law.