A 3497 New Jersey General Assembly · 2026-2027 Regular Session

Establishes "Forbidding the Algorithmic Inflation of Rent (FAIR) Act." *

New Jersey bill A3497 prohibits landlords from using software or services that facilitate secret price coordination to restrict competition in rental housing. The bill makes it illegal for landlords to subscribe to "coordinators" (like property management software that analyzes real-time pricing data), for coordinators to enable price-fixing agreements, or for multiple landlords to engage in "consciously parallel pricing coordination." It directly affects rental property owners using such tools, excluding single landlords managing multiple properties under their control or legitimate multiple listing services. The law enforces these rules under New Jersey's Antitrust Act, aiming to curb software-driven rent hikes that contributed to a 35% median rent increase for three-bedroom units since 2021.

Issues: ✓ Housing

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Jun 2026

General Assembly Passage

Jun 2026

Senate Passage

Jun 2026

Signed into Law

Jul 2026

Introduced Jan 13, 2026 Signed Jul 20, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

Introduced → Reprint · 9 edits

MAJOR

The First Reprint of A3497 makes several substantive changes to New Jersey's bill targeting algorithmic rent coordination. It adds a new civil pleading standard that lowers the burden for plaintiffs in cases under this act, exempts licensed real estate brokers from key prohibitions, creates a safe harbor for third-party property managers acting under contract, preempts conflicting municipal ordinances, and broadens the definition of nonpublic information. A new prohibited act was also added covering agents or representatives of coordinators who engage in consciously parallel pricing coordination.

ENFORCEMENT

New section 5 establishes a civil pleading standard specific to this act: a complaint need only show that a contract, combination, or conspiracy is 'among the realm of plausible possibilities' and does NOT need to exclude the possibility of independent action. This lowers the bar compared to standard antitrust pleading requirements (Twombly/Iqbal). The section explicitly limits this relaxed standard to violations under section 3 of this act only.

ELIGIBILITY

Licensed real estate brokers, broker-salespersons, and salespersons performing brokerage services under R.S.45:15-1 are now exempted from the prohibition on subscribing to or contracting with coordinators (section 3a), and are also carved out of the definition of 'coordinator' itself.

A new safe harbor in section 8 provides that actions of a third-party property manager taken in accordance with a rental contract shall not be deemed consciously parallel pricing coordination. A corresponding definition of 'third party property manager' was added to the definitions section.

SCOPE

New section 6(b) preempts municipalities from enacting ordinances that supersede this act, establishing state-level preemption over local rent-related regulations.

New section 6(a) clarifies that the act does not authorize or permit any conduct already unlawful under the New Jersey Antitrust Act, serving as a savings provision to prevent the bill from being read as creating a safe harbor for existing antitrust violations.

REQUIREMENT

New section 3(d) adds a fourth prohibited act: any agent or representative of a coordinator or its subcontractor engaging in consciously parallel pricing coordination. This extends liability beyond the coordinator owner to its agents and representatives.

DEFINITION

The definition of 'nonpublic information' was changed from information that is 'not available for use or purchase by the public' to information that is 'not widely and readily available to the public at no cost.' This broadens what qualifies as nonpublic - information available only for a fee would now still be considered nonpublic, whereas under the old definition it would not have been.

In the definition of 'consciously parallel pricing coordination,' the phrase 'that are not related by a business agreement or contract' was struck, removing an exclusion that had limited the definition. Also, 'controlled' was changed to 'owned' in the single-owner exception, narrowing the scope of properties exempt from the prohibition.

TECHNICAL

The multiple listing service exemption was moved from section 5 to new section 17, and sections on public education, rulemaking, and effective date were renumbered from 6-8 to 9-11. The reference in the 'rental price restriction program' definition was updated from a pending bill citation to 'section 10 of this act.'

Reprint → Reprint Of Substitute · 15 edits

MAJOR

The Assembly Committee Substitute for A3497 significantly restructures and expands the bill, now formally named the 'Forbidding the Algorithmic Inflation of Rent (FAIR) Act.' The most substantive changes include: making it unlawful for any person to perform a coordinating function (not just coordinators or property owners), broadening the definition of prohibited conduct to cover tacit agreements and algorithm training, adding new definitions for 'algorithmic device' and 'competitively sensitive information,' removing the broker exception, extending the effective date from 4 months to 12 months after enactment, and making rulemaking permissive rather than mandatory.

REQUIREMENT

New subsection (e) makes it unlawful for ANY person to perform a coordinating function, not just coordinators or rental property owners. This is the broadest new prohibition in the bill.

DEFINITION

'Consciously parallel pricing coordination' replaced with 'parallel pricing coordination,' which explicitly includes tacit agreements (mutual consent without verbal or written communication) and agreements between a coordinator and multiple property owners. A new definition of 'tacit agreement' is added.

New definition of 'algorithmic device' covering devices that use algorithms to process data about rental prices, lease terms, or occupancy levels. Excludes spreadsheets without AI that require human analysis, and databases that only query unprocessed data.

'Coordinator' redefined from 'any software, data analytics service, or entity' to 'any person who operates algorithmic revenue management software or an algorithmic device.' This broadens the term to cover individuals and adds 'algorithmic revenue management software' as a specific category.

'Coordinating function' restructured from three sequential steps (collect, analyze, recommend) to three alternative prongs. Now explicitly includes using competitively sensitive information to train an algorithm, and adds a third prong covering setting or recommending prices via the same or substantially similar algorithm that facilitates parallel pricing coordination.

'Rental property owner' now explicitly includes a person holding a controlling interest in an entity that owns rental units, deeming them a single rental property owner with that entity. This closes a potential loophole for indirect ownership structures.

New definition of 'competitively sensitive information' replacing the prior 'nonpublic information' concept in the coordinating function definition. The separate 'nonpublic information' definition is simplified to mean information not available to the public at no cost, with a rule that combined public and nonpublic information is deemed nonpublic.

SCOPE

Prohibited conduct in subsection (a) expanded from 'subscribe to, contract with' to 'receive, subscribe to, contract for.' The broker exception previously carved out of this provision is removed.

Preemption clause changed from prohibiting municipalities from enacting ordinances that 'supersede' the act to those that 'conflict with' it, and adds an exception for ordinances explicitly authorized or required by other law.

The provision exempting multiple listing services and their members is removed. The separate provision protecting third-party property managers acting under a rental contract is also removed.

TIMELINE

Effective date changed from the first day of the fourth month following enactment to the first day of the twelfth month following enactment, giving a 12-month implementation period instead of 4 months.

ENFORCEMENT

The mandatory public education program requirement (Department of Law and Public Safety and Department of Community Affairs) is removed entirely.

Rulemaking authority changed from mandatory ('shall adopt') to permissive ('may adopt'), and the Commissioner of Community Affairs is removed as a rulemaker. Only the Attorney General retains this authority.

Application of the New Jersey Antitrust Act expanded from sections 7 through 17 to sections 6 through 17, bringing an additional section of antitrust remedies into play.

The civil pleading standard provision (lowering the bar for plaintiffs to show plausible possibility of conspiracy without excluding independent action) is removed from the substitute.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 30, 2026

Upper · Passed

Passed Senate (Passed Both Houses) (33-4)

upper

Jun 30, 2026

Lower · Passed

Passed by the Assembly (57-22-0)

lower

Jun 23, 2026

Committee

Recommitted to Assembly State and Local Government Committee

lower

Mar 9, 2026

Committee

Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee

lower

Jan 13, 2026

Introduced

Introduced, Referred to Assembly Housing Committee

lower

4 primary · 12 co-sponsors