Bill > SB384

This bill, known as the Preventing Algorithmic Price Fixing Act, aims to prohibit the sale, licensing, provision, or use of price-setting algorithms that process nonpublic data with the intent or reasonable expectation of being used by multiple competitors in the same market. Specifically, the bill targets algorithms designed to set prices, supply levels, rents, or occupancy levels of goods, services, or rental properties. The bill provides an affirmative defense for users who can demonstrate they exercised reasonable due diligence, such as obtaining written assurances that the algorithm does not use nonpublic input data. Violations can result in civil actions by the Attorney General, district attorneys, city attorneys, or county counsel, with potential penalties of up to $1,000 per violation. The bill defines key terms like "price-setting algorithm," "nonpublic input data," and "competitors," and explicitly states that contracts conflicting with these provisions are void. Importantly, the bill does not limit the applicability of existing antitrust laws and is designed to prevent potential anti-competitive practices facilitated by sophisticated pricing algorithms that could harm market fairness and consumer interests.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB384