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

Senator Wahab's Preventing Algorithmic Price Fixing Act targets the use of pricing algorithms that process confidential competitor data, establishing new restrictions on software that sets prices or rental rates across multiple businesses operating in the same market. The legislation prohibits selling, licensing, or using algorithms that utilize nonpublic information to determine prices, supply levels, or rental occupancy rates when those systems are intended for use by multiple competitors.

The bill creates an affirmative defense for algorithm users who can demonstrate reasonable due diligence, including obtaining written assurances that the software does not process nonpublic competitor data. Violations are calculated per authorized user for those providing the algorithms, while businesses using non-compliant systems face penalties for each month of use. The Attorney General and local prosecutors may pursue civil actions seeking damages, injunctive relief, or penalties up to $1,000 per violation.

The measure defines key terms including "price-setting algorithm" as any software or artificial intelligence system processing nonpublic data to produce pricing strategies, while excluding multiple listing services. "Nonpublic input data" encompasses confidential competitor information less than one year old. The bill specifies that its provisions supplement rather than replace existing antitrust laws, with any conflicting contracts deemed void to the extent of the conflict.