California Closes Pricing-Algorithm Loophole; AB 325 Modernizes Antitrust Law
California enacted a new law (AB 325) in 2026 that closes loopholes in the Cartwright Act, cracking down on landlords and corporations using pricing algorithms to coordinate rent increases—a practice that had artificially inflated housing costs.
The New Law
California's antitrust laws are modernizing to take on algorithmic price fixing. A new law (AB 325) closes loopholes in California's Cartwright Act that allowed corporations to use pricing algorithms to harm tenants. The law targets a growing practice in which large property management firms and real estate platforms used software to coordinate pricing and suppress rents at artificial levels, reducing competition and harming renters.
Broader Tenant Protections
This move sits alongside existing protections. The Tenant Protection Act of 2019 (AB 1482) gives tenants who live in California some protection against excessive rent increases. To qualify, your unit must have been built before January 1, 2005. Single-family homes are not covered unless owned by corporate landlords. Additionally, the state's Social Security Tenant Protection Act (AB 246) now allows you to use "Social Security hardship" as an affirmative defense in an eviction case based on nonpayment of rent. Evidence is required, and the law does not eliminate the tenant's responsibility to pay back rent. This law will remain in effect until January 20, 2029.
What This Means for You
If you are renting in California, AB 325 strengthens protections against coordinated rent hikes by large corporate landlords. Smaller increases and more fair pricing may result from stricter antitrust enforcement. However, the law applies mainly to corporate actors, not small mom-and-pop landlords. Also, if you're a newcomer on a visa and concerned about eviction risk, know that California requires just-cause eviction and offers some of the nation's strongest tenant protections—but verify your building's construction date to confirm AB 1482 coverage.
Sources
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