CA SB295: California Preventing Algorithmic Collusion Act of 2025.

In one paragraph

California's SB 295 (2025-26 Regular Session), the California Preventing Algorithmic Collusion Act of 2025, would have barred a person from distributing, or making recommendations based on, a pricing algorithm to 2 or more competitors, under specified circumstances, if they knew or should have known it processes competitor data, and from using such recommendations. Civil penalty up to $25,000 per violation. The Senate passed it 29-10, but the Assembly refused passage 13-24 on September 13, 2025.

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

What it means for business

None: the bill failed and never became law. It would have restricted businesses that supply or use pricing algorithms processing competitor data, with civil penalties up to $25,000 per violation.

Key provisions

1. 1Would add Chapter 8 (commencing with Section 17370) to the Business and Professions Code
2. 2Would prohibit distributing, or making recommendations based on, a pricing algorithm to 2 or more competitors, under specified circumstances, if the person knows or should know it processes competitor data
3. 3Would also prohibit using a pricing algorithm's recommendation if the person knows or should know it uses or incorporates competitor data
4. 4Affirmative defense for a person who shows by a preponderance of evidence that they exercised reasonable due diligence before using recommendations
5. 5Would not apply if all competitor data was collected more than one year before the use, recommendation or distribution; a violating contract would be void to that extent
6. 6Attorney General, district attorneys, county counsel or city attorneys could sue for restitution, punitive damages, civil penalties up to $25,000 per violation and other relief
7. 7Status: Assembly refused passage (Ayes 13, Noes 24) on September 13, 2025, with a motion to reconsider entered; no further action before the session ended

Latest legislative action

Sep 13, 2025. Read third time. Refused passage. (Ayes 13. Noes 24. Page 3448.) Motion to reconsider made.

Sponsors (showing 5 of 41)

Roll call votes (showing 3 of 13)