N.Y. GBS Law § 340-B — New York Code / Act GBS / Article 22 / Section 340-B
Agreements to not compete with respect to residential rental dwelling units
Status: in_force

§ 340-b. Agreements to not compete with respect to residential rental\ndwelling units. 1. As used in this section, the following terms shall\nhave the following meanings:\n  (a) "Algorithm" means a computational process that uses a set of rules\nto define a sequence of operations.\n  (b) "Algorithmic device" means any machine, device, computer program\nor computer software that on its own or with human assistance performs a\ncoordinating function.\n  (c) "Coordinating function" means performing all of the following\nsubfunctions, provided, however, that a product used for the purpose of\nestablishing rent or income limits in accordance with the emergency\ntenant protection act of nineteen seventy-four, as amended, the rent\nstabilization law of nineteen sixty-nine, as amended, the city rent and\nrehabilitation law, the emergency housing rent control law, or an\naffordable housing program administered by a federal, state, or local\ngovernment or other political subdivision shall not be considered to be\nperforming a coordinating function:\n  (i) collecting historical or contemporaneous prices, supply levels, or\nlease or rental contract termination and renewal dates of residential\ndwelling units from two or more residential rental property owners or\nmanagers, provided that at least two such residential rental property\nowners or managers are not wholly-owned subsidiaries of the same parent\nentity or otherwise owned or managed by the same residential rental\nproperty owner or manager;\n  (ii) analyzing or processing the information described in subparagraph\n(i) of this paragraph using a system, software, or process that uses\ncomputation, including by using that information to train an algorithm;\nand\n  (iii) recommending rental prices, lease renewal terms, ideal occupancy\nlevels, or other lease terms and conditions to a residential rental\nproperty owner or manager.\n  (d) "Residential rental property owner or manager" means any\nindividual or entity that owns or is a beneficial owner of, directly or\nindirectly, in whole or in part, or manages one or more residential\nrental dwelling units in New York state.\n  2. It shall be an unlawful violation of this article for a person or\nentity to knowingly or with reckless disregard facilitate an agreement\nbetween or among two or more residential rental property owners or\nmanagers to not compete with respect to residential rental dwelling\nunits, including by operating or licensing a software, data analytics\nservice, or algorithmic device that performs a coordinating function on\nbehalf of or between and among such residential rental property owners\nor managers.\n  3. It shall be considered an unlawful agreement in violation of this\narticle for a residential rental property owner or manager to knowingly\nor with reckless disregard set or adjust rental prices, lease renewal\nterms, occupancy levels, or other lease terms and conditions in one or\nmore of their residential rental properties based on recommendations\nfrom a software, data analytics service, or algorithmic device\nperforming a coordinating function.\n  4. Nothing in this section shall impair or limit the applicability of\nany other part of this article or any other state law.\n