NEWS RELEASE

FOR IMMEDIATE RELEASE 

Last night, the Rockville City Council adopted an ordinance concerning our Landlord-Tenant code, enhancing and fortifying the Code's provisions, streamlining procedures for landlords and tenants, and elucidating the rights and obligations of each party.

Moreover, we addressed the emerging issue of algorithmic pricing, which involves technology and the capacity of software utilizing algorithms to collect both public and private data to advise client landlords on the maximum permissible rental charge.

This practice undermines fair competition and equitable negotiation between landlords and tenants, and it bears the hallmarks of collusion and price-fixing. The use of algorithmic pricing appears to disproportionately advantage large corporate interests, enabling them to manipulate the system, escalate prices, and, as alleged, inform clients of vacancy rates that would maximize profits.

The State of Maryland, along with other entities, is conducting investigations into this process.

Legislation has been introduced at the state level by Delegate Julie Palakovich Carr (District 17) to prohibit this practice, while Montgomery County is also considering a similar ban. I am proud to have advocated for this prohibition since learning of the practice, raising the issue at a City Council meeting, testifying in support of the state legislation on multiple occasions, and appearing before the County Council to promote the passage of the Montgomery County bill.

With the enactment of this ordinance, Rockville distinguishes itself as the first city in Maryland to ban the use of algorithmic pricing.

It is my sincere hope that other jurisdictions will follow suit, thereby restoring fair and free competition and negotiation between landlords and tenants.

I extend my gratitude to my colleagues and City staff for their diligent efforts and for having the foresight to act decisively rather than delay further study.

While additional work remains, this ban, along with the provisions in the Landlord-Tenant code and other mechanisms, positions Rockville at the forefront of actively promoting fairness and balance in landlord-tenant relations.

###

Contact: Barry Jackson
Rockville City Council 
[email protected]
202-641-4018