Preventing Algorithmic Price Fixing Act: prohibition on price-fixing algorithm use.
- Prohibits businesses from using algorithms that process competitors' private data to set prices or rents.
- Imposes civil penalties of up to $1,000 for each violation of the algorithmic price-fixing ban.
- Allows sellers to avoid penalties by proving they conducted due diligence before using pricing algorithms.
- Authorizes the Attorney General and local officials to enforce the ban through civil lawsuits.
Senator Wahab's Preventing Algorithmic Price Fixing Act prohibits businesses from using or providing algorithms that process confidential pricing data from multiple sellers to develop pricing strategies for goods, services, or rental properties in California.
The legislation establishes specific parameters for prohibited algorithmic systems, defining them as software or artificial intelligence programs that utilize historical or real-time nonpublic data - such as prices, output levels, customer information, or sales territories - from two or more sellers to generate pricing or rental strategies. Sellers can mount an affirmative defense by demonstrating they conducted due diligence to verify compliance, including direct inquiries to algorithm providers about potential violations.
The Attorney General, city attorneys, and county counsels may pursue civil enforcement actions against violators, with penalties of up to $1,000 per infraction. For algorithm providers, each authorized user constitutes a separate violation, while sellers face penalties for each month of prohibited use. The law applies to businesses selling goods and services to consumers, landlords setting rental rates, and entities operating algorithms on their behalf.
 Ash KalraD Assemblymember | Committee Member |  Not Contacted | |
 Rebecca Bauer-KahanD Assemblymember | Committee Member | Not Contacted | |
 Isaac BryanD Assemblymember | Committee Member | Not Contacted | |
 Damon ConnollyD Assemblymember | Committee Member | Not Contacted | |
 Diane DixonR 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 |
|---|---|---|---|---|
| 28 | 10 | 2 | 40 | PASS |
- Prohibits businesses from using algorithms that process competitors' private data to set prices or rents.
- Imposes civil penalties of up to $1,000 for each violation of the algorithmic price-fixing ban.
- Allows sellers to avoid penalties by proving they conducted due diligence before using pricing algorithms.
- Authorizes the Attorney General and local officials to enforce the ban through civil lawsuits.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Wahab's Preventing Algorithmic Price Fixing Act prohibits businesses from using or providing algorithms that process confidential pricing data from multiple sellers to develop pricing strategies for goods, services, or rental properties in California.
The legislation establishes specific parameters for prohibited algorithmic systems, defining them as software or artificial intelligence programs that utilize historical or real-time nonpublic data - such as prices, output levels, customer information, or sales territories - from two or more sellers to generate pricing or rental strategies. Sellers can mount an affirmative defense by demonstrating they conducted due diligence to verify compliance, including direct inquiries to algorithm providers about potential violations.
The Attorney General, city attorneys, and county counsels may pursue civil enforcement actions against violators, with penalties of up to $1,000 per infraction. For algorithm providers, each authorized user constitutes a separate violation, while sellers face penalties for each month of prohibited use. The law applies to businesses selling goods and services to consumers, landlords setting rental rates, and entities operating algorithms on their behalf.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 28 | 10 | 2 | 40 | PASS |
Ash KalraD Assemblymember | Committee Member | Not Contacted | |
Rebecca Bauer-KahanD Assemblymember | Committee Member | Not Contacted | |
Isaac BryanD Assemblymember | Committee Member | Not Contacted | |
Damon ConnollyD Assemblymember | Committee Member | Not Contacted | |
Diane DixonR Assemblymember | Committee Member | Not Contacted |