San Francisco 1st in U.S. to ban AI rent price-fixing software

SAN FRANCISCO - San Francisco is putting a stop to automated price-setting for rent, arguing that software has scammed renters out of good prices for housing units.

Supervisors say that landlords have used AI-powered software, where input details were not available to the public, and then compute what they call an illegal price-fixing rate, forcing renters to pay way more than they should.

On Tuesday, the supervisors unanimously passed an ordinance that bans the use or sale of that kind of software. 

City leaders say they are the first in the nation to do it.

"We will become the first city in america to pass such a law," Supervisor President Aaron Peskin said. "Thank you colleagues, same house, same call, this ordinance is finally passed and will be an example for cities all over this country."

They have accused landlords who use this software of collusion, referencing lawsuits filed by the US Department of Justice, and eight other attorneys general.

Even Vice President Kamala Harris mentioned the legality of this practice during the Democratic National Convention.

San Francisco hopes to be a trailblazer in ending the use of this software, saying it has a list of landlords in the city that use it. 

Peskin, who is running for mayor, authored the ordinance. 

His office says advocates from other cities and jurisdictions are looking to San Francisco for guidance to pass a law of their own.

The legislation will officially become law 30 days after Mayor London Breed signs it.