Tech bills of the week: Overseeing algorithm-set rental prices; and halting federal overreach in data center construction

Monitoring algorithms used in setting rent

A new bill seeks to compel any entity creating rental rates to reveal when algorithms are involved in setting prices for home rentals by leveraging the authorities of the Federal Trade Commission.

The Housing Price Transparency Act, introduced by Rep. Kathy Castor, D-Fla., on Monday, requires firms and organizations overseeing home rental prices to report their use of pricing algorithms that aid in developing, determining and setting housing and rental costs. 

The bill would apply existing restrictions stipulated in the Federal Trade Commission Act to algorithmic rental price setting. Violations of the bill, or failure to disclose the use of algorithms in rental prices, would fall under section 18(a)(1)(B) surrounding “unfair or deceptive acts or practices.”

Recourse is also offered to victims of such violations. States are eligible to bring a civil action on behalf of the plaintiffs and seek damages, restitution or other compensation. The FTC itself is also granted the right to enforce the bill’s provisions. 

Limiting federal, lawmaker influence over new data centers

Rep. Tom Barrett, R-Mich., introduced two bills on Thursday that look to grant states more autonomy in new data center construction as part of the AI compute boom, focusing on preventing the federal government from overriding local zoning laws and ensuring lawmaker transparency.

The Protecting Local Control of Data Centers Act focuses on prohibiting federal agencies from overriding state and local land-use zoning and permitting laws related to data centers. Federal agencies would also not be able to use federal funds allocated towards data center construction to force state and local governments to surrender their authority.

The No Data Center NDAs Act targets lawmakers who have signed non-disclosure agreements related to data center operations. Under the proposal, sitting lawmakers would not be able to sign NDAs that prohibit the discussion of possible or planned data center locations and resource consumption. Should this bill be passed into law, the House Ethics Committee and the Select Committee on Ethics of the Senate would both be tasked with implementing and overseeing the new NDA restrictions. 

“Families in my district are rightly concerned about the effect data centers could have on their utility bills, as well as the land and water in their neighborhood. They deserve to know all the facts and have the final say over any proposed project,” Barrett said in a press release. “That starts with stopping federal overreach and preventing the secrecy pledges that have plagued Michigan and undermined the power of local residents.”