SB 384 (Wahab D) Preventing Algorithmic Price Fixing Act: prohibition on price-fixing algorithm use.

Current Text: Amended: 7/17/2025 
Last Amend: 7/17/2025
Status: 7/17/2025-Assembly Rule 63 suspended. From committee: Do pass as amended and re-refer
to Com. on APPR. (Ayes 9. Noes 4.) (July 16). Read second time and amended. Re-referred to Com. on
APPR.
Location: 7/16/2025-A. APPR.
Summary: Current law governs various business practices in this state, including certain laws relating
to the use of technology. 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, the
Preventing Algorithmic Price Fixing Act, would prohibit a person from selling, licensing, providing, or
using a price-setting algorithm, as defined, with the intent or reasonable expectation that it be used
by 2 or more competitors, as defined, in the same market if the person knows or should know that the
algorithm processes nonpublic data, as defined, to set either: (1) a price or supply level of a good or
service or (2) a rent or occupancy level of rental property. The bill would provide a user of a pricesetting
algorithm an affirmative defense to liability if the user exercised reasonable due diligence, as
specified. The bill would authorize the Attorney General or a district attorney, city attorney, or county
counsel to file a civil action for violations of these provisions, as specified, including for a civil penalty of
up to $1,000 per violation, as specified.