Berkeley Bans AI Rent Pricing Algorithms; Bartlett Calls for Technology to Empower, Not Exploit Communities [Corrected]

Berkeley, CA - On Tuesday (March 12, 2025), the Berkeley City Council took a historic step by banning AI-driven rent-pricing algorithms, marking a critical move to protect renters and address soaring housing costs. Vice Mayor Ben Bartlett praised the decision while emphasizing the broader responsibility to ensure AI is developed and used ethically to protect vulnerable communities.

Empowering Communities Through Technology

"Technology itself is neutral-people are not," said Bartlett. "Algorithms can uplift or oppress, depending entirely on whose hands they're in and whose interests they're designed to serve. Our role is clear: We must ensure AI empowers communities and not exploits them." The ordinance prohibits landlords from using or selling rent-pricing algorithms within Berkeley, with violators facing fines of up to $1,000 per violation.

These tools rely on proprietary data to manipulate housing markets, driving up rents, restricting housing availability, and worsening inequality. Leah Simon Weisberg, Executive Director California Center for Movement Legal Services and Berkeley resident, stated, "We know that the price fixing that this software facilitated has significantly contributed to the housing affordability crisis. I am hopeful that Berkeley will start seeing a reduction in rents when management companies can no longer conspire so easily."

Protecting Against Exploitative Practices

Dynamic targeted pricing, a core tool used by large-scale entities, extends beyond the housing market and affects ridesharing, airfares, and other consumer services. By using algorithmic analysis, corporations exploit user data to maximize revenue, often at the expense of fairness and transparency. These systems allow companies to victimize consumers and entire communities, further widening economic disparities.

This ordinance affirms Berkeley's commitment to fighting back against such exploitative practices and protecting impacted people. Housing Advisory Commissioner Sean Vaughn Scott voiced strong support, stating, "This ordinance makes it clear that Berkeley won't allow predatory technologies to destabilize our housing market. It's a vital step toward ethical technology use and tackling housing inequality."

Prioritizing Justice and Equity

"This ordinance addresses an immediate threat, but it's also the beginning of a framework for responsible innovation," said Bartlett. "The future is not written. It is built. We have a responsibility to craft a future where AI works for humanity-not at its expense." With this bold measure, Berkeley joins cities like San Francisco and Philadelphia in addressing the misuse of AI to protect consumers and uphold equity.

The legislation represents a critical step toward ensuring that technological innovation prioritizes justice, accountability, and the well-being of all communities.

For more information or to schedule an interview with Vice Mayor Ben Bartlett, contact:

Press Contact: James Chang, Chief of Staff
Office of Vice Mayor Ben Bartlett
Berkeley City Council, District 3
Email: jchang@cityofberkeley.info
Phone: 415-527-7765
Address: 2996 Adeline Street Unit 8 Berkeley, CA 94703