SB1996
PREVENT RENTAL PRICE FIXING
TL;DR
Illinois Senator Graciela Guzman introduced SB1996 to ban landlords from using algorithmic pricing services (like RealPage) that analyze competitor rent data and recommend prices. The bill treats this as consumer fraud, lets tenants sue for triple damages, and voids any arbitration clauses that would block class actions.
How This Might Impact Your Business
Landlords of houses, apartments, and ADUs in Illinois would be banned from paying for or subscribing to any service (like RealPage, Yardi, or similar revenue management software) that collects competitor rent data and recommends pricing.
Proptech companies offering algorithmic rent-setting tools would effectively lose the Illinois market, since 'facilitating' price coordination between landlords becomes illegal.
Violations trigger the Consumer Fraud and Deceptive Business Practices Act, exposing companies to Attorney General enforcement plus private lawsuits with treble damages, attorney's fees, and no minimum dollar threshold.
Pre-dispute arbitration clauses and class action waivers in tenant leases or software contracts become unenforceable for claims under this Act, opening the door to class actions.
Exemptions are narrow: only inpatient medical, licensed long-term care, and correctional facilities are excluded. Standard multifamily, single-family rentals, and ADUs are all covered.
No company size threshold, so small independent landlords and large REITs face identical liability.
Currently introduced and re-referred to Assignments, meaning it has not advanced yet but sits in an active session running through 2026.
What Should You Do
Inventory any revenue management or pricing software your property management team uses and flag anything that pulls competitor pricing data, then ask vendors directly whether their Illinois operations would continue if this passes.
Have legal review your current tenant lease arbitration and class action waiver language, since this bill would void them for covered claims.
If you are a proptech vendor, brief your product and sales teams on Illinois exposure and start scoping an Illinois-specific product mode that relies only on a landlord's own data.
Track SB1996 through the Illinois Senate Assignments Committee and coordinate with the Illinois REALTORS or apartment associations on testimony before the next hearing.
Document the business justification for any current algorithmic pricing use now, in case litigation follows enactment.
Who It Affects
Sponsors
Status Timeline
introduced
Rule 3-9(a) / Re-referred to Assignments
February 6, 2025