Division 11 — Prohibition of Anti-Competitive Automated Rent Price-Fixing

(“Prohibition of Anti-Competitive Automated Rent Price-Fixing” added 5-22-2025 by O-21955 N.S.; effective 6-21-2025.)

The purpose and intent of this Division is to protect San Diegans from artificially inflated rental rates and unfair rent increases by prohibiting the sale, licensing, and use of algorithmic devices . This Division also provides tenants with remedies for violations of this Division.

(“Purpose and Intent” added 5-22-2025 by O-21955 N.S.; effective 6-21-2025.)

For purposes of this Division, defined terms appear in italics. The following definitions apply in this Division:

Algorithmic device means a software or product that uses or incorporates one or more algorithms to perform calculations of nonpublic competitor data of two or more landlords to advise a landlord on, or recommend to a landlord , rental rates or occupancy levels that may be achieved for a residential rental property in the City of San Diego. Algorithmic device does not include the following:

• (a) A software or product used by a person to publish reports regarding rental rates or occupancy levels from aggregated historical nonpublic competitor data that is more than 90 days old, or from information available to the general public, and does not recommend rental rates or occupancy levels for future residential rental property leases or renewals.

• (b) A software or product used by a person to establish rental rates or income limits in accordance with local, state, or federal affordable housing program guidelines.

• (c) A software or product used by a person conducting an appraisal that does not recommend rental rates during the runtime operation of the software or product.

Landlord has the same meaning as in San Diego Municipal Code section 98.0702, as may be amended.

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Lease has the same meaning as in San Diego Municipal Code section 98.0702, as may be amended.

Nonpublic competitor data means information that is not available to the general public, whether the information is attributable to a specific competitor or anonymized or whether the information is derived from or otherwise provided by another person . Nonpublic competitor data includes information about actual rental rates, rental rate changes, residential rental property supply levels, occupancy levels, or lease start and end dates.

Person has the same meaning as in San Diego Municipal Code section 11.0210, as may be amended.

Residential rental property has the same meaning as in San Diego Municipal Code section 98.0702, as may be amended.

Tenant has the same meaning as in San Diego Municipal Code section 98.0702, as may be amended.

(“Definitions” added 5-22-2025 by O-21955 N.S.; effective 6-21-2025.)

• (a) It is unlawful for a person to sell, license, or otherwise provide an algorithmic device to a landlord .

• (b) It is unlawful for a landlord to use an algorithmic device to set rental rates or occupancy levels for residential rental property .

For each month a violation of section 98.1103(b) exists or continues, and for each residential rental property a landlord uses an algorithmic device , it shall constitute a separate and distinct violation.

(“Use and Sale of Algorithmic Devices Prohibited” added 5-22-2025 by O-21955 N.S.; effective 6-21-2025.)

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San Diego Municipal Code

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• (a) A tenant may seek injunctive relief, damages, or civil penalties of up to $1,000 per violation of this Division, in a civil action against a landlord . In an action brought under this Division, a prevailing landlord or tenant shall recover costs and reasonable attorney’s fees. A prevailing tenant includes a tenant granted an order for injunctive relief. A lease provision that limits a landlord or tenant from recovering attorney’s fees shall not be enforceable against a landlord’s or tenant’s claim for attorney’s fees that arise under this Division.

• (b) The remedies under section 98.1104 are cumulative and are in addition to any other remedies in this Division or at law, statute, or ordinance.

• (c) The City may enforce this Division under Chapter 1, Article 2 of this Code, including civil and criminal remedies.

• (“Remedies” added 5-22-2025 by O-21955 N.S.; effective 6-21-2025.)

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Article 8: Housing