Bill > S232

This bill, known as the "Preventing Algorithmic Collusion Act of 2025," aims to address potential anticompetitive practices in pricing algorithms by establishing new regulations and enforcement mechanisms. The bill creates a comprehensive framework for monitoring and preventing the use of pricing algorithms that could facilitate collusion through nonpublic competitor data. Companies using pricing algorithms with annual revenues of $5,000,000 or more will be required to provide detailed reports to the Federal Trade Commission (FTC) or Department of Justice upon request, including information about how the algorithm works, what data it uses, and whether it engages in price discrimination. The legislation makes it unlawful to use pricing algorithms trained with nonpublic competitor data and establishes significant penalties, including civil penalties of at least $10,000 per day of violation or the total value of products sold using the algorithm. Additionally, the bill mandates transparency requirements, such as disclosing to customers and employees when pricing algorithms are used to set prices or commercial terms. The FTC will also be required to conduct a comprehensive study on pricing algorithms within two years of the act's enactment, examining their prevalence, potential competitive risks, and potential benefits, with the goal of developing future recommendations for oversight and regulation.

Justice

https://www.congress.gov/bill/119th-congress/senate-bill/232/all-info