Colorado Governor Vetoes Ban On Rent-Setting Algorithms

June 2, 2025 – Algorithms have made billions for Big Tech but some might be using these data tools illegally.

On Thursday, Gov. Jared Polis (D-Colo.) vetoed a bill that, if passed, would have made it the first state in the nation to ban landlords from using rent-setting algorithms.

Polis defended his veto by stating that a total ban on algorithms would ultimately be harmful. He argued algorithms serve as useful tools for consumers searching for optimum rent deals. In addition, Polis stated the bill would be useless as illicit partnerships among landlords are already prohibited by the law.

The use of rent-setting algorithms has become a hot topic in Colorado, especially as the state joined the U.S. Department of Justice (DOJ) and 7 others in a lawsuit against RealPage Inc. The software company has been accused of the illegal use of algorithms, which have allegedly reduced competition amongst apartment landlords and increased rent prices for Americans.

In response to Polis’ veto, RealPage Inc. praised Polis’ decision. However, many consumer rights advocacy groups were enraged by the veto, including the American Economic Liberties Project, a local housing advocate that has long fought against the use of rent-setting algorithms. 

The lawsuit against RealPage is still unfolding, and Polis’ veto emphasizes the increasing national divide over the use of algorithms and Artificial Intelligence in Americans' lives.