Preventing Algorithmic Price Fixing Act: prohibition on certain price-setting algorithm uses.
- Prohibits the use of algorithms that process private competitor data to set prices or rental rates.
- Imposes penalties of up to $1,000 per violation for companies sharing pricing algorithms between competitors.
- Allows businesses to avoid penalties by obtaining written proof that algorithms do not use private competitor data.
- Authorizes state and local prosecutors to pursue civil actions against violators.
Senator Wahab's Preventing Algorithmic Price Fixing Act targets the use of pricing algorithms that process confidential competitor data, prohibiting their deployment across multiple competitors within the same market. The legislation bars individuals and entities from selling, licensing, or using algorithms that utilize nonpublic information to set prices, supply levels, or rental terms when intended for use by two or more market competitors.
The bill establishes an affirmative defense pathway for those who demonstrate reasonable due diligence, including obtaining written assurances that algorithms do not process nonpublic competitor data. Enforcement authority rests with the Attorney General, district attorneys, and local government attorneys, who may pursue civil actions resulting in penalties up to $1,000 per violation. Each authorized algorithm user constitutes a separate violation, while continued unauthorized use incurs monthly violation counts.
The legislation defines key terms including "price-setting algorithm" as software or artificial intelligence systems processing nonpublic data to produce pricing or rental strategies, while explicitly exempting multiple listing services. It characterizes "competitors" as two or more entities offering similar goods, services, or rental properties to overlapping customer bases in the same market. The bill requires no state appropriations and grants courts the authority to award attorney's fees and costs to prevailing government prosecutors.
 Jacqui IrwinD Assemblymember | Committee Member |  Not Contacted | |
 Rebecca Bauer-KahanD Assemblymember | Committee Member | Not Contacted | |
 Cottie Petrie-NorrisD Assemblymember | Committee Member | Not Contacted | |
 Buffy WicksD Assemblymember | Committee Member | Not Contacted | |
 Chris WardD Assemblymember | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 9 | 2 | 1 | 12 | PASS |
- Prohibits the use of algorithms that process private competitor data to set prices or rental rates.
- Imposes penalties of up to $1,000 per violation for companies sharing pricing algorithms between competitors.
- Allows businesses to avoid penalties by obtaining written proof that algorithms do not use private competitor data.
- Authorizes state and local prosecutors to pursue civil actions against violators.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Wahab's Preventing Algorithmic Price Fixing Act targets the use of pricing algorithms that process confidential competitor data, prohibiting their deployment across multiple competitors within the same market. The legislation bars individuals and entities from selling, licensing, or using algorithms that utilize nonpublic information to set prices, supply levels, or rental terms when intended for use by two or more market competitors.
The bill establishes an affirmative defense pathway for those who demonstrate reasonable due diligence, including obtaining written assurances that algorithms do not process nonpublic competitor data. Enforcement authority rests with the Attorney General, district attorneys, and local government attorneys, who may pursue civil actions resulting in penalties up to $1,000 per violation. Each authorized algorithm user constitutes a separate violation, while continued unauthorized use incurs monthly violation counts.
The legislation defines key terms including "price-setting algorithm" as software or artificial intelligence systems processing nonpublic data to produce pricing or rental strategies, while explicitly exempting multiple listing services. It characterizes "competitors" as two or more entities offering similar goods, services, or rental properties to overlapping customer bases in the same market. The bill requires no state appropriations and grants courts the authority to award attorney's fees and costs to prevailing government prosecutors.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 9 | 2 | 1 | 12 | PASS |
Jacqui IrwinD Assemblymember | Committee Member | Not Contacted | |
Rebecca Bauer-KahanD Assemblymember | Committee Member | Not Contacted | |
Cottie Petrie-NorrisD Assemblymember | Committee Member | Not Contacted | |
Buffy WicksD Assemblymember | Committee Member | Not Contacted | |
Chris WardD Assemblymember | Committee Member | Not Contacted |