The New Jersey FAIR Act, formally the Forbidding the Algorithmic Inflation of Rent Act (A3497), prohibits rental property owners and software providers from using algorithmic systems that perform a coordinating function over rental prices, material lease terms, or occupancy levels. Governor Mikie Sherrill signed it on July 20, 2026 as P.L.2026, c.43, and it takes effect July 1, 2027. New Jersey is the fourth state to regulate algorithmic rent-setting directly.
What the New Jersey FAIR Act Covers
The law treats coordinated algorithmic pricing as an antitrust problem rather than a software choice. It reaches landlords and property management companies, and it also reaches the third-party coordinators who supply the software. The prohibited conduct is using an algorithmic device to coordinate rents, or contributing sensitive non-public data such as rental prices, occupancy levels, and material lease terms into a system that lets competing owners align their pricing.
Ordinary tools are not swept in. A spreadsheet without AI, or a database that returns only unprocessed public data, falls outside the definition. The line is the coordinating function: pooling competitor data and returning a recommendation.
Penalties and Enforcement
Violations are treated as violations of the New Jersey Antitrust Act, which opens the door to civil penalties, injunctive relief, and treble damages. The New Jersey Attorney General enforces the law and is directed to establish an online complaint database.
What Rental Businesses Should Do
Owners and managers operating in New Jersey have until July 1, 2027 to audit their revenue-management software, review any data-sharing arrangements with pricing vendors, and confirm whether the tools they use pull competitor data. A vendor contract signed years ago is the most likely place this obligation is hiding.
Source: New Jersey Legislature: A3497
Report a violation: If you believe a business is violating this law, you can file a complaint with the New Jersey Division of Consumer Affairs.
