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    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
    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

    View 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

    View 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