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CA AB325: Cartwright Act: violations.

In effect since Jan 1, 2026 California

Last verified Sep 29, 2026 · official bill text

AB325 · where it stands

All steps complete
  1. Introduced Complete
  2. Passed first chamber Complete
  3. Passed both chambers Complete
  4. Signed Complete
  5. In effect Since Jan 1, 2026
What do these statuses mean?
Introduced
Filed in the legislature; may be waiting for a committee hearing.
Passed a chamber
Approved by one or both chambers; awaiting further action.
Signed / enacted
Signed into law; it may or may not be in effect yet.
In effect
The effective date has passed.
Dead / vetoed
Vetoed, failed, or the session ended without action.

In one paragraph

California's antitrust law now makes it unlawful to use or distribute a common pricing algorithm, meaning any method, including software, used by two or more people that uses competitor data to recommend, set or otherwise influence prices or terms, as part of an agreement to restrain trade, or to coerce others into adopting its recommended prices or terms. It also provides that a Cartwright Act complaint need only allege facts making such an agreement plausible, without having to rule out independent action. Took effect January 1, 2026.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

If you use shared pricing software that draws on competitors' data, review it for antitrust risk under California law from January 1, 2026.

What this means

AB 325 amends the Cartwright Act by targeting the misuse of common pricing algorithms that restrain trade. It impacts businesses using algorithmic pricing strategies to enhance market competition.

Key provisions

  1. Unlawful to use or distribute a 'common pricing algorithm' as part of a contract, combination or conspiracy to restrain trade (Bus. & Prof. Code 16729)
  2. Unlawful to use or distribute one while coercing others to adopt its recommended price or commercial terms
  3. Common pricing algorithm: any method, including software, used by two or more persons that uses competitor data to recommend, align, stabilize, set or otherwise influence prices or commercial terms
  4. For any Cartwright Act complaint, facts showing an agreement is plausible are sufficient; plaintiffs need not allege facts tending to exclude independent action (Bus. & Prof. Code 16756.1)

Compliance checklist

  • Ensure that no common pricing algorithms are used in a manner that restrains trade. Who: Businesses using pricing algorithms. Deadline: Immediately upon enactment. Penalty: Criminal charges under the Cartwright Act.
  • Review and adjust pricing strategies to comply with the new regulations. Who: Compliance officers and legal teams in affected businesses. Deadline: Ongoing. Penalty: Potential legal action for violations.

Latest legislative action

Oct 6, 2025. Chaptered by Secretary of State - Chapter 338, Statutes of 2025

Full analysis

Assembly Bill No. 325 introduces changes to the enforcement of the Cartwright Act in California, particularly concerning the use of common pricing algorithms. The bill prohibits individuals from using or distributing these algorithms if they are part of a contract or conspiracy that restrains trade. It makes it unlawful to coerce another person to set or adopt a recommended price or commercial term recommended by the common pricing algorithm. The bill applies to any person involved in the use or distribution of common pricing algorithms, which are methodologies that utilize competitor data to influence pricing or commercial terms. This definition encompasses various technologies and practices, potentially affecting a wide range of industries that rely on algorithmic pricing strategies. The nature of penalties for non-compliance with AB 325 is not confirmed in the available description. Key definitions in the bill clarify terms such as 'common pricing algorithm' and 'commercial term,' which are crucial for understanding the scope of the law. The bill does not confirm any provisions regarding reimbursement for local agencies.

Topics and industries

Related topics

Algorithmic Pricing

Affected industries

TechnologyConsumer Protection

This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error

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