San Francisco to ban software that "enables price collusion" by landlords

Up to $1k for violation seems low, compared to the high cost and stickiness of rent, and the difficulty in proving the software was used.

So what happens if they do this, and prices keep going up just as much as before? Will they admit that they're wrong? Will they double down and try to ban something else?

I don’t think this ordinance is useful (https://sfgov.legistar.com/LegislationDetail.aspx?ID=6789588...). The headline is that it bans “price collusion” which is already illegal under the Sherman Antitrust Act. But it is sloppy in that it also bans the use of any proprietary data about competitors (not even shared by competitors). So to the extent that it prohibits the use of neighborhood rent estimates (like Zestimate or airdna), I think it needlessly bans useful services.

In fact, can you sue Zillow for publishing a Rent Zestimate? It does seem like the ordinance bans “provid[ing]… any algorithmic device”. An “algorithmic device” “perform[s] calculations of non-public competitor data” and “advis[es] a landlord… on the amount of rent that the landlord may obtain”. “Non-public competitor data” is “information that is not available to the general public” (such as data on historical rental ads on Zillow). I’m not sure whether Rent Zestimate would fall under the exception “(A) report that publishes existing rental data in an aggregated manner but does not recommend rents or occupancy levels for future leases” since they provide a Zestimate on an individual address, not “aggregated”. Someone should try suing Zillow.

It is also pandering by mayoral candidate Aaron Peskin, who has opposed many efforts to loosen zoning to increase housing competition. Where the Board of Supervisors can make a big difference at increasing competition, he has stood in the way (e.g. opposed SB 50 upzoning near transit, banned group housing because there was a “glut” of old units, increased the inclusionary housing fee/tax to reduce construction, empowers nonprofits to make demands on development). But he’s happy to do something that supposedly promotes competition but has no substantive impact.

Wow rents are going up!

A) encourage more supply

B) prevent landlords from observing rent prices.

Politicians: Let’s go with B! It will totally work.