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

Current Text: Amended: 7/17/2025 html pdf
Last Amend: 7/17/2025
Status: 8/28/2025-Failed Deadline pursuant to Rule 61(a)(11). (Last location was APPR. SUSPENSE
FILE on 8/20/2025)(May be acted upon Jan 2026)
Location: 8/28/2025-A. 2 YEAR
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.