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Oregon Lawmakers Target Algorithmic Price-Fixing in Rental Market

By  |  March 23, 2025
Algorithmic Search and Recommender Systems in the Digital Services Act

Lawmakers in Salem are reviewing a proposed bill that could introduce significant changes to Oregon’s rent control laws. Senate Bill 722, currently under consideration by the Senate Committee on Housing and Development, aims to tighten restrictions on rent increases and curb the use of algorithm-based pricing software in the rental market.

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    According to a statement from the bill’s sponsor, Senator Chris Gorsek, the legislation seeks to address concerns that automated pricing tools, which rely on non-public data from competitors, contribute to artificially high rental rates. Gorsek likened these practices to insider trading, arguing that they distort fair market competition and push housing costs beyond what many Oregonians can afford.

    Per a statement from housing advocates, many tenants believe that existing rent control measures have loopholes that allow landlords to bypass intended protections, leading to continued financial strain and displacement. The bill would also reduce the exemption period for new construction from 15 years to 7 years, a move intended to expand the reach of rent increase caps more quickly.

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    Read more: UK Lawmaker Introduces AI Regulation Bill in House of Lords

    However, the committee is also weighing amendments to the bill. One amendment would maintain the current 15-year exemption for new units, while another proposes a compromise by reducing the exemption to 10 years instead of 7. Gorsek has voiced support for the compromise, stating that it could provide greater certainty for both tenants and property developers.

    Supporters of Senate Bill 722, including Portland City Councilor Angelita Murillo and representatives from the Oregon Law Center, have underscored the urgency of the issue. They note that rental costs continue to rise, with over 2,000 eviction filings occurring each month in Oregon, primarily due to unaffordable rent. Per their testimony, stronger protections are necessary to prevent more families from losing their homes.

    On the other side of the debate, housing providers and industry representatives have pushed back against the bill, arguing that banning revenue management software could have unintended consequences. They contend that such tools help set accurate rental prices and eliminating them may drive up initial rental costs while discouraging new housing development.

    As lawmakers deliberate, the debate highlights the ongoing struggle to balance tenant protections with the need for continued housing construction.

    Source: Koin