SB 295 (Hurtado D) California Preventing Algorithmic Collusion Act of 2025.
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(Hurtado D) California Preventing Algorithmic Collusion Act of 2025. |
Position: Watch
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Introduced: 2/6/2025 |
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Last Amend: 9/2/2025 |
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Status: 9/13/2025- Joint Rule 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.) Read third time. Refused passage. (Ayes 13. Noes 24. Page 3448.) Motion to reconsider made by Assembly Member Bauer-Kahan. Reconsideration granted.(Set for Hearing on 1/5/2025) |
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Location: 9/13/2025-A. CONCURRENCE |
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Summary: Current law imposes various responsibilities on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Current law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement through civil actions. This bill would enact the California Preventing Algorithmic Collusion Act of 2025, to prohibit a person person, as described, from distributing or making recommendations based on the use of a pricing algorithm to 2 or more competitors, as defined, under specified circumstances, if the person knows or should know that the pricing algorithm processes competitor data, as defined. This bill would also prohibit a person from using the recommendation of a pricing algorithm that processes competitor data, as specified, if the person knows or should know that the pricing algorithm uses or incorporates competitor data. The bill would establish an affirmative defense to liability under this prohibition for a person who demonstrates by a preponderance of evidence that they exercised reasonable due diligence before using the recommendations of a pricing algorithm, as specified. The bill would specify when the use, recommendation, or distribution of a pricing algorithm constitutes separate violations. The bill would declare that these provisions do not apply if all of the competitor data processed by the pricing algorithm was collected more than one year before the use, recommendation, or distribution of the pricing algorithm. The bill would declare that a contract that violates these provisions is to that extent void. |