Bill > SB1154

This bill, the California Preventing Algorithmic Collusion Act of 2024, aims to address the use of pricing algorithms that incorporate nonpublic competitor data. The key provisions include: 1. Requiring companies to provide the Attorney General with detailed reports on their pricing algorithms, which will be treated as confidential trade secrets. 2. Prohibiting the use or distribution of pricing algorithms that use, incorporate, or were trained with nonpublic competitor data. 3. Establishing presumptions that certain violations of antitrust laws have occurred if the Attorney General can show specific conditions were met. 4. Requiring companies with $5 million or more in annual revenue that use pricing algorithms to disclose to customers and employees/contractors that prices or commercial terms are set or recommended by an algorithm. 5. Authorizing the Attorney General to collaborate with other state agencies to study the use of pricing algorithms and their potential impact on competition and consumers, and publish the results by January 1, 2027. The bill also includes legislative findings to justify the limitation on public access to the information provided in the reports to the Attorney General.