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AI Summary
Prohibits specific algorithmic price-setting practices to prevent price fixing, detailing enforcement measures and exceptions.
Business Impact
If you use algorithms for pricing in California, you must comply with new rules or face penalties.
What do these statuses mean? ▼
Introduced
— Filed in the legislature; not yet heard in committee
In Committee
— Assigned to and being reviewed by a legislative committee
Passed
— Approved by one or both chambers; awaiting further action
Signed / Enacted
— Signed into law by the governor; may or may not be in effect yet
Dead / Vetoed
— Vetoed, failed to pass, or session expired without action
Unknown
— Status data not yet available or awaiting classification
Affected Industries
Topics How we classify →
What This Means
The Preventing Algorithmic Price Fixing Act aims to curb anti-competitive practices by prohibiting specific algorithmic price-setting methods, with conditions and exceptions detailed.
Key Provisions
- Prohibits collusive algorithmic coordination and price signaling.
- Applies to businesses using price-setting algorithms with exceptions for consumer welfare.
- Enforcement measures include potential fines.
- Defines key terms such as 'algorithmic price setting' and 'collusion'.
Latest Legislative Action
August 29 hearing: Held in committee and under submission.
Bill Sponsors (showing 5 of 30)
| Name | Role |
|---|---|
| Alpert | Author |
| Anderson | Author |
| Benoit | Author |
| Bill Berryhill | Coauthor |
| Bradford | Author |
Roll Call Votes (showing 3 of 6)
Do pass as amended and be re-referred to the Committee on [Appropriations] ·
Jul 16, 2025
9 Yea
4 Nay
2 Other
Passed ✓
Do pass and be re-referred to the Committee on [Privacy and Consumer Protection] ·
Jul 1, 2025
9 Yea
2 Nay
1 Other
Passed ✓
3rd Reading ·
Jun 3, 2025
28 Yea
10 Nay
2 Other
Passed ✓
Compliance Checklist
Review and adjust algorithmic pricing strategies
Who: Businesses using price-setting algorithms
Deadline: Not specified
Penalty: Potential penalties for non-compliance
Who: Businesses using price-setting algorithms
Deadline: Not specified
Penalty: Potential penalties for non-compliance
Full Legal Analysis
The Preventing Algorithmic Price Fixing Act restricts the use of algorithms in price-setting that could lead to price fixing. The bill specifies prohibited practices such as collusive algorithmic coordination and price signaling. Enforcement measures include potential fines, although the bill text should be consulted for specifics. Exceptions are outlined for algorithms that enhance consumer welfare or are used for competitive pricing. Definitions of key terms like 'algorithmic price setting' and 'collusion' are provided.
Official Source
Official Bill Text
View SB384 on official legislature website →
Related Topics
Affected Industries
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