Cartwright Act: violations.

Assembly Member Aguiar-Curry's antitrust legislation targets the use of pricing algorithms that could enable anti-competitive practices, while modifying how violations of California's Cartwright Act can be prosecuted. The bill prohibits using or distributing common pricing algorithms as part of agreements that restrain trade, and bars coercing others to adopt recommended prices or commercial terms for similar products and services.

The legislation defines common pricing algorithms as processes, including those using machine learning or artificial intelligence, that analyze similar data to recommend or set prices and commercial terms. These terms encompass service levels, availability, and production quantities. The bill's scope extends to various distribution methods, including licensing and subscription services, while explicitly excluding end consumers from its restrictions.

To facilitate enforcement, the bill adjusts the evidence threshold for Cartwright Act violation complaints. Plaintiffs need only present factual allegations making the existence of an anti-competitive agreement plausible, without having to rule out the possibility of independent action. The measure maintains existing antitrust law protections while expanding their application to modern pricing technologies.