SB-384
Consumer Protection

Preventing Algorithmic Price Fixing Act: prohibition on price-fixing algorithm use.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • 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.

Summary

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.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Judiciary
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Judiciary
Hearing has not been scheduled yet
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
Ash KalraD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Isaac BryanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Damon ConnollyD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Diane DixonR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 13 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Ash KalraD
Assemblymember
Committee Member
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Profile
Isaac BryanD
Assemblymember
Committee Member
Profile
Damon ConnollyD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Bill EssayliR
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Diane PapanD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Rick ZburD
Assemblymember
Committee Member
Profile
Aisha WahabD
Senator
Bill Author
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Catherine StefaniD
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

June 3, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
2810240PASS

Key Takeaways

  • 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.

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 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.

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 Judiciary
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Judiciary
Hearing has not been scheduled yet
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

June 3, 2025
PASS
Senate Floor
Vote on Senate Floor
AyesNoesNVRTotalResult
2810240PASS

Contacts

Profile
Ash KalraD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Isaac BryanD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Damon ConnollyD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Diane DixonR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 13 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Ash KalraD
Assemblymember
Committee Member
Profile
Rebecca Bauer-KahanD
Assemblymember
Committee Member
Profile
Isaac BryanD
Assemblymember
Committee Member
Profile
Damon ConnollyD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Bill EssayliR
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Diane PapanD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Rick ZburD
Assemblymember
Committee Member
Profile
Aisha WahabD
Senator
Bill Author
Profile
John HarabedianD
Assemblymember
Committee Member
Profile
Catherine StefaniD
Assemblymember
Committee Member