Bill > SB295

This bill, known as the California Preventing Algorithmic Collusion Act of 2025, aims to regulate the use of pricing algorithms that potentially enable anti-competitive practices. The bill requires businesses with annual revenues of $5 million or more that use pricing algorithms to disclose to customers when prices or commercial terms are set by such algorithms. It prohibits the use or distribution of pricing algorithms that incorporate "competitor data" - defined as confidential, competitively sensitive information from two or more competitors in the same market. Upon request from the Attorney General, businesses must provide information about their pricing algorithms, with corporate officers required to certify the accuracy of such reports. Violations can result in significant legal consequences, including civil penalties up to $1 million, potential forfeiture of business rights, and the possibility of dissolution for repeat or egregious offenders. The bill empowers the Attorney General and district attorneys to bring civil actions against companies that fail to comply with these provisions, with penalties determined by factors such as the nature and persistence of the misconduct. Importantly, the bill explicitly states that any contract violating its provisions is void, and it does not impair existing antitrust laws, positioning itself as an additional layer of protection against potential algorithmic collusion in pricing and commercial practices.

Budget and Finance, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB295