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

Senator Wahab's Preventing Algorithmic Price Fixing Act proposes new restrictions on businesses' use of pricing algorithms in California, prohibiting software systems that collect and analyze multi-source pricing data to create pricing models for goods and services.

The legislation defines prohibited "price-fixing algorithms" as those that gather historical or current pricing and supply information from multiple entities or public databases, process this data, and generate pricing models based on the analysis. Under the proposed rules, the Attorney General, city attorneys, and county counsels would have authority to pursue civil actions against businesses using such algorithms, with penalties of up to $1,000 per violation. These enforcement actions could seek damages, injunctive relief, restitution, or civil penalties, with courts authorized to award attorney's fees and costs to prevailing government plaintiffs.

The measure adds a new chapter to California's Business and Professions Code focused specifically on algorithmic pricing practices. While the bill establishes the basic framework for prohibition and enforcement, it does not specify implementation timelines or detail how businesses must validate their existing pricing systems for compliance.