Int. No. 1140
By Council Members Hudson, Restler, Cabán, Nurse and Williams
A Local Law to amend the administrative code of the city of New York, in relation to the use of non-public competitor data
Be it enacted by the Council as follows:
Section 1. Chapter 5 of title 20 of the administrative code of the city of New York is amended by adding a new subchapter 27 to read as follows:
SUBCHAPTER 27
NON-PUBLIC COMPETITOR DATA
§ 20-891 Definitions. For purposes of this subchapter, the following terms have the following meanings:
Algorithmic software. The term “algorithmic software” means any software that uses non-public competitor data to determine or recommend rent amounts, fees, occupancy rates, lease terms, or other contract terms and conditions pertaining to any dwelling unit or commercial premises within the city, or to determine or recommend the pricing of any other good or service offered within the city. The term “algorithmic software” does not include any software used for the purpose of establishing rent or income limits in accordance with laws, rules or regulations, or any guidelines of the federal government, the state of New York, or the city pertaining to the administration of affordable housing.
Dwelling unit. The term “dwelling unit” has the same meaning as set forth in paragraph 13 of subdivision a of section 27-2004.
Non-public competitor data. The term “non-public competitor data” means information on rent amounts, fees, occupancy rates, lease terms, or other contract terms and conditions pertaining to dwelling units or commercial premises, or information on the pricing of any other good or service, that is not widely available or easily accessible to the public and that is obtained by a person competing in a market from another person that competes in the same or a related market, regardless of whether such information is attributable to a specific competitor.
§ 20-892 Prohibited conduct. It is unlawful for a person to:
1. Distribute, sell, license, or otherwise provide algorithmic software;
2. Purchase, subscribe to, contract for, or otherwise procure algorithmic software;
3. Use algorithmic software in the setting of rent amounts, fees, occupancy rates, lease terms, or other contract terms and conditions pertaining to any dwelling unit or commercial premises within the city, or in the pricing of any other good or service offered within the city;
4. Collect non-public competitor data for the purpose of determining for or recommending to one or more persons rent amounts, fees, occupancy rates, lease terms, or other contract terms and conditions pertaining to any dwelling unit or commercial premises within the city, or for the purpose of determining for or recommending to one or more persons pricing for any other good or service offered in the city; or
5. Facilitate any agreement between two or more persons that are not related through a business contract to use non-public competitor data to set rent amounts, fees, occupancy rates, lease terms, or other contract terms and conditions pertaining to any dwelling unit or commercial premises within the city, or to set prices for any good or service offered in the city.
§ 20-893 Enforcement. a. Sale, purchase, or use of algorithmic software. 1. Any person who violates paragraph 1, 2, or 3 of section 20-892 or any rule promulgated thereunder is liable for a civil penalty of not less than $500 for each violation.
2, Violations of paragraph 1 and 2 of section 20-892, or any rule promulgated thereunder, shall be counted as follows:
(a) Each sale, license, or provision of algorithmic pricing software constitutes a separate violation of paragraph 1 of section 20-892 or any rule promulgated thereunder.
(b) Each purchase of, subscription to, contracting for, or procurement of algorithmic pricing software constitutes a separate violation of paragraph 2 of section 20-892 or any rule promulgated thereunder.
3. A proceeding to recover any civil penalty authorized pursuant to this subdivision or any rule promulgated thereunder may be commenced by service of a notice of violation returnable to the office of administrative trials and hearings.
4. The corporation counsel, or such other persons designated by the corporation counsel on behalf of the department, may initiate in any court of competent jurisdiction any action or proceeding that may be appropriate or necessary for correction of any violation underlying a notice of violation issued pursuant to paragraph 1, 2, or 3 of section 20-892 or any rule promulgated thereunder, including mandating compliance with such paragraph or rule promulgated thereunder or such other relief as may be appropriate.
b. Collection, or facilitation of agreements concerning use, of non-public competitor data. 1. A violation of paragraph 4 or 5 of section 20-892 or any rule promulgated thereunder constitutes an unconscionable trade practice under section 20-700, and any person who commits such a violation is subject to applicable civil penalties and fines under section 20-703 or any rule promulgated thereunder.
2. An action or proceeding to recover any civil penalty or fine authorized pursuant to paragraph 1 of this subdivision or any rule promulgated thereunder shall be commenced in accordance with subdivisions e through j of section 20-703, and the commissioner may pursue enforcement under section 20-704 in lieu of instituting or continuing such an action or proceeding.
c. Rulemaking. The commissioner shall promulgate rules necessary for the implementation of this section.
§ 20-894 Private right of action. a. Any person alleging a violation of section 20-892 may commence a civil action, in accordance with applicable law, in any court of competent jurisdiction for any or all of the following relief:
1. Compensatory damages;
2. Punitive damages;
3. Injunctive relief;
4. Declaratory relief;
5. Attorney’s fees and costs; and
6. Any other relief the court deems appropriate.
b. A civil action under this section shall be commenced within 6 years of the date the person knew or should have known of the alleged violation.
c. A person commencing a civil action under this section shall simultaneously serve notice of such action and a copy of the complaint upon the department. Failure to do so shall not adversely affect any person’s cause of action.
d. The provisions of this subchapter shall not limit or abrogate any claim or cause of action a person has under common law or by statute. The provisions of this chapter are in addition to any such common law and statutory remedies.
e. Nothing contained in this subchapter shall be construed as creating any private right of action against the city or any agency or employee thereof.
§ 2. This local law takes effect 120 days after it becomes law.
JMF
LS #12403/13641/16354/17508/17602/17617/17957
06/12/2025 2:26 PM