ASSEMBLY HOUSING COMMITTEE
STATEMENT TO
ASSEMBLY, No. 3497
with committee amendments
STATE OF NEW JERSEY
DATED: MARCH 9, 2026
The Assembly Housing Committee reports favorably and with committee amendments Assembly Bill No. 3497.
As amended and reported, this bill prohibits the facilitation of agreements among rental property owners who restrict competition with respect to residential dwelling units. Under the bill, it is unlawful and a violation of the “New Jersey Antitrust Act” for: (1) a rental property owner, or any agent, representative, or subcontractor thereof, to subscribe to, contract with, or otherwise exchange any form of consideration in return for the use of services of a coordinator; (2) the owner of a coordinator to facilitate an agreement among rental property owners that restricts competition with respect to residential dwelling units, including by performing a coordinating function; (3) two or more rental property owners to engage in consciously parallel pricing coordination; or (4) any agent or representative of a coordinator or subcontractor thereof to engage in consciously parallel pricing coordination. The bill provides that its provisions would not apply to the actions of a rental property owner related exclusively to multiple properties owned by the same property owner. Additionally, the actions of a third-party property manager taken in accordance with a rental contract is not deemed to constitute consciously parallel pricing coordination.
A “coordinator” is defined in the bill to mean any software, data analytics service, or entity that performs a coordinating function for any rental property owner, with certain exceptions. “Coordinating function” is defined to mean: (1) collecting nonpublic information; (2) analyzing or processing nonpublic information through use of a system, software, algorithm, or other automated process; and (3) recommending rental prices, lease renewal terms, or ideal occupancy levels to a rental property owner. “Nonpublic information” is defined as information including but not limited to prices, supply levels, security deposits, ideal occupancy levels, lease contract termination, renewal dates of residential dwelling units or any other material lease terms from two or more rental property owners that is less than 365 days old and is not widely and readily available to the public at no cost. “Consciously parallel pricing coordination” is defined to mean a tacit or express agreement between two or more rental property owners to raise, lower, change, maintain, or manipulate pricing for the purchase or sale of reasonably interchangeable products or services unless required to do so in accordance with certain governmental rental price restriction programs. A rental property owner who owns more than one rental property is not committing consciously parallel pricing coordination if the actions taken by the owner are related exclusively to the properties they own.
The bill also stipulates that current enforcement provisions of the New Jersey Antitrust Act will apply to violations committed pursuant to this bill. Additionally, in a civil action filed pursuant to the bill, a complaint: (1) plausibly pleads a violation of section 3 of the “New Jersey Antitrust Act,” if the complaint contains factual allegations demonstrating that the existence of a contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce is among the realm of plausible possibilities; and (2) need not allege facts tending to exclude the possibility of independent action, which is to only apply to violations of the bill’s provisions prohibiting certain actions considered to be antitrust.
The bill further stipulates that it does not authorize or permit any conduct already unlawful pursuant to the “New Jersey Antitrust Act.” It is also prohibited for a municipality to enact ordinances superseding the bill.
Lastly, the Department of Law and Public Safety, in conjunction with the Department of Community Affairs, is required to develop and undertake a public education program designed to inform the citizens of this State of the provisions of the bill. A component of this program is to include information posted on the website of each department dedicated to the provisions of the bill and the steps a consumer is to take if the consumer suspects a violation.
COMMITTEE AMENDMENTS:
The committee amended the bill to:
(1) remove from the definition of “consciously parallel pricing coordination” a reference that it be an agreement where two or more rental property owners are not related by a business agreement or contract and clarify that it is not consciously parallel pricing coordination if a rental property owner who owns more than one rental property takes actions that are related exclusively to the properties they own;
(2) modify who is excluded from the definition of “coordinator;”
(3) adjust the definition of “nonpublic information” to remove the stipulation that the information is to not be available for use or purchase by the public and add that the information is to be not widely and readily available to the public at no cost;
(4) add a definition of “third-party property manager” and stipulate that actions taken by a third-party property manager in accordance with a rental contract is not deemed to constitute consciously parallel pricing coordination;
(5) add that it is a violation of the bill if any agent or representative of a coordinator or subcontractor engages, at the direction of two or more property owners, in consciously parallel pricing coordination;
(6) reinstate language about how complaints in a civil action plausibly plead a violation of the “New Jersey Antitrust Act” and that it need not allege facts tending to exclude the possibility of independent action, which is to be applied only in relation to violations of the bill’s provisions prohibiting certain actions considered to be antitrust;
(7) establish that the bill does not authorize or permit any conduct already unlawful pursuant to the “New Jersey Antitrust Act” and prohibit a municipality from enacting ordinances superseding the bill;
(8) make technical updates.
This bill was prefiled for introduction in the 2026-2027 session pending technical review. As reported, the bill includes the changes required by technical review, which has been performed.