Santa Monica, CA Ordinance Banning Algorithmic Rent-Setting Software

Santa Monica, CA banned the sale and use of algorithmic rent-setting software that relies on nonpublic competitor data to coordinate rental pricing. Adopted around June 24, 2025, the ordinance provides tenants with an affirmative defense in eviction proceedings where such software was used to set rent, and allows civil enforcement by renters or the city. The ordinance was motivated in part by housing affordability concerns following the January 2025 LA wildfires. It targets RealPage YieldStar-type systems that aggregate competitor pricing data to raise rents across multiple properties.

Technical detail

Santa Monica City Council ordinance (adopted approximately June 24, 2025; reported week of July 2, 2025 by PYMNTS and surfsantamonica.com). Bans both the sale and use of algorithmic rent-setting software that uses nonpublic competitor rental data to set prices — covers RealPage YieldStar-type revenue management systems. Grants tenants an affirmative defense in unlawful-detainer (eviction) proceedings where algorithm-set rent is at issue. Civil enforcement by tenants or City of Santa Monica. Strength rated 'limited' because enforcement mechanism is primarily affirmative defense / civil; no criminal penalties confirmed. Part of broader post-wildfire housing affordability legislative push in Southern California. Enacted_date approximate (±1-2 days) — sourced from 'last week' framing in July 2 PYMNTS article.

Who is protected: Santa Monica, CA residential renters

Who must comply: Landlords, property managers, and vendors selling algorithmic rent-setting software in Santa Monica, CA

Key facts

Related consumer protection rules elsewhere

• FTC Act Section 5 (unfair/deceptive AI) · In effect
• TAKE IT DOWN Act · In effect
• FCRA (AI in credit & background checks) · In effect
• ECOA / Regulation B (AI credit discrimination) · In effect
• COPPA + 2025 Rule (childrens data) · In effect
• TCPA (AI voice calls) · In effect