By Rebecca Picciotto | The Wall Street Journal
Data company RealPage is confronted with state and local efforts to ban its algorithmic pricing system for landlords in the rental-apartment market.
Now, a provision buried in House Republicans’ mega tax bill is throwing the company a lifeline.
The bill that the House passed last week would prevent state and local governments from regulating artificial intelligence and automated decision systems for 10 years.
SEC. 43201. ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY MODERNIZATION INITIATIVE.
(c) MORATORIUM.—
(1) IN GENERAL.—Except as provided in paragraph (2), no State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10 year period beginning on the date of the enactment of this Act.
That decadelong moratorium faces an uphill battle in the Senate. And the bill would do little to halt class-action lawsuits that allege RealPage violated antitrust and consumer-protection laws.
But if the House tax bill becomes law, it would provide RealPage with significant legal relief. The provision would effectively muzzle some of the dozens of local and statewide efforts to outlaw algorithmic pricing systems, including RealPage.
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Related: Court Case May Alter the Way Rental Rates Are Calculated in the Valley