SB-384
Consumer Protection

Preventing Algorithmic Price Fixing Act: prohibition on certain price-setting algorithm uses.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • 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.

Summary

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.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Privacy and Consumer Protection
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Privacy and Consumer Protection
Hearing scheduled for , State Capitol, Room 444
Assembly Judiciary Hearing
Assembly Committee
Assembly Judiciary Hearing
Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]
Assembly Judiciary Hearing
Assembly Committee
Assembly Judiciary Hearing
Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB384 Wahab
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Jacqui IrwinD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Chris WardD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Jacqui IrwinD
Assemblymember
Committee Member
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Chris WardD
Assemblymember
Committee Member
Profile
Isaac BryanD
Assemblymember
Committee Member
Profile
Lori WilsonD
Assemblymember
Committee Member
Profile
Tina McKinnorD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Joe PattersonR
Assemblymember
Committee Member
Profile
Josh LowenthalD
Assemblymember
Committee Member
Profile
Liz OrtegaD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Aisha WahabD
Senator
Bill Author
Profile
Carl DeMaioR
Assemblymember
Committee Member
Profile
Alexandra MacedoR
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Aisha Wahab
Aisha WahabD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

Latest Voting History

July 1, 2025
PASS
Assembly Committee
Assembly Judiciary Hearing
AyesNoesNVRTotalResult
92112PASS

Key Takeaways

  • 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.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Aisha Wahab
Aisha WahabD
California State Senator

Summary

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.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Privacy and Consumer Protection
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Privacy and Consumer Protection
Hearing scheduled for , State Capitol, Room 444
Assembly Judiciary Hearing
Assembly Committee
Assembly Judiciary Hearing
Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]
Assembly Judiciary Hearing
Assembly Committee
Assembly Judiciary Hearing
Do pass and be re-referred to the Committee on [Privacy and Consumer Protection]
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB384 Wahab
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Judiciary Hearing
Senate Committee
Senate Judiciary Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Latest Voting History

July 1, 2025
PASS
Assembly Committee
Assembly Judiciary Hearing
AyesNoesNVRTotalResult
92112PASS

Contacts

Profile
Jacqui IrwinD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Chris WardD
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Jacqui IrwinD
Assemblymember
Committee Member
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Profile
Cottie Petrie-NorrisD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Chris WardD
Assemblymember
Committee Member
Profile
Isaac BryanD
Assemblymember
Committee Member
Profile
Lori WilsonD
Assemblymember
Committee Member
Profile
Tina McKinnorD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Joe PattersonR
Assemblymember
Committee Member
Profile
Josh LowenthalD
Assemblymember
Committee Member
Profile
Liz OrtegaD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Aisha WahabD
Senator
Bill Author
Profile
Carl DeMaioR
Assemblymember
Committee Member
Profile
Alexandra MacedoR
Assemblymember
Committee Member