WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(A) 1 A PERSON IN THIS STATE MAY NOT USE ALGORITHMIC PRICE FIXING TO ESTABLISH THE RENTAL RATE.
(B)–(B)(3) 1 B. THERE IS A REBUTTABLE PRESUMPTION THAT A PERSON COMMITTED AN ANTITRUST VIOLATION OR A VIOLATION OF CHAPTER 10, ARTICLE 7 OF THIS TITLE, IF THE ATTORNEY GENERAL PROVES ALL OF THE FOLLOWING FACTORS: 1. A PERSON USED ALGORITHMIC PRICINGAlgorithmic pricing"Algorithmic pricing" or "algorithmic price fixing": (a) Means any computational process that processes data to recommend or set a price or commercial terms that is in or affecting interstate or foreign commerce. (b) Includes computational process derived from machine learning or other artificial intelligence techniques.A.R.S. § 44-1383(E)(1) THAT INCLUDED NONPUBLIC COMPETITOR DATANonpublic competitor data"Nonpublic competitor data": (a) Means nonpublic data that is derived from or otherwise provided by another person that competes in the same market as a person or a related market. (b) Does not include information distributed, reported or otherwise communicated in a way that does not reveal any underlying data from a competitor such as narrative industry reports, news reports, business commentaries or generalized industry survey results.A.R.S. § 44-1383(E)(2). 2. A PERSON USED ALGORITHMIC PRICINGAlgorithmic pricing"Algorithmic pricing" or "algorithmic price fixing": (a) Means any computational process that processes data to recommend or set a price or commercial terms that is in or affecting interstate or foreign commerce. (b) Includes computational process derived from machine learning or other artificial intelligence techniques.A.R.S. § 44-1383(E)(1) TO SET OR RECOMMEND RESIDENTIAL RENTAL RATES. 3. AT LEAST TWO COMPETITORS USED THE SAME ALGORITHMIC PRICINGAlgorithmic pricing"Algorithmic pricing" or "algorithmic price fixing": (a) Means any computational process that processes data to recommend or set a price or commercial terms that is in or affecting interstate or foreign commerce. (b) Includes computational process derived from machine learning or other artificial intelligence techniques.A.R.S. § 44-1383(E)(1) FOR RESIDENTIAL RENTAL RATES IN THE SAME OR RELATED MARKETS.
(C) 1 C. THE PRESUMPTION, AS PRESCRIBED IN SUBSECTION B OF THIS SECTION, IS REBUTTABLE IF THE DEFENDANT PROVIDES BY CLEAR AND CONVINCING EVIDENCE THAT THE DEFENDANT DID NOT DEVELOP OR DISTRIBUTE THE ALGORITHM USED IN THE ALGORITHMIC PRICINGAlgorithmic pricing"Algorithmic pricing" or "algorithmic price fixing": (a) Means any computational process that processes data to recommend or set a price or commercial terms that is in or affecting interstate or foreign commerce. (b) Includes computational process derived from machine learning or other artificial intelligence techniques.A.R.S. § 44-1383(E)(1) AND DID NOT HAVE ACTUAL KNOWLEDGE OR COULD NOT HAVE REASONABLY KNOWN THAT THE ALGORITHM USED IN THE ALGORITHMIC PRICINGAlgorithmic pricing"Algorithmic pricing" or "algorithmic price fixing": (a) Means any computational process that processes data to recommend or set a price or commercial terms that is in or affecting interstate or foreign commerce. (b) Includes computational process derived from machine learning or other artificial intelligence techniques.A.R.S. § 44-1383(E)(1) CONTAINED NONPUBLIC COMPETITOR DATANonpublic competitor data"Nonpublic competitor data": (a) Means nonpublic data that is derived from or otherwise provided by another person that competes in the same market as a person or a related market. (b) Does not include information distributed, reported or otherwise communicated in a way that does not reveal any underlying data from a competitor such as narrative industry reports, news reports, business commentaries or generalized industry survey results.A.R.S. § 44-1383(E)(2).
(D) D. THE ATTORNEY GENERAL SHALL ENFORCE THIS SECTION.
(E)(1)–(E)(3) E. FOR THE PURPOSES OF THIS SECTION: 1. "ALGORITHMIC PRICINGAlgorithmic pricing"Algorithmic pricing" or "algorithmic price fixing": (a) Means any computational process that processes data to recommend or set a price or commercial terms that is in or affecting interstate or foreign commerce. (b) Includes computational process derived from machine learning or other artificial intelligence techniques.A.R.S. § 44-1383(E)(1)" OR "ALGORITHMIC PRICE FIXING": (a) MEANS ANY COMPUTATIONAL PROCESS THAT PROCESSES DATA TO RECOMMEND OR SET A PRICE OR COMMERCIAL TERMS THAT IS IN OR AFFECTING INTERSTATE OR FOREIGN COMMERCE. (b) INCLUDES COMPUTATIONAL PROCESS DERIVED FROM MACHINE LEARNING OR OTHER ARTIFICIAL INTELLIGENCE TECHNIQUES. 2. "NONPUBLIC COMPETITOR DATANonpublic competitor data"Nonpublic competitor data": (a) Means nonpublic data that is derived from or otherwise provided by another person that competes in the same market as a person or a related market. (b) Does not include information distributed, reported or otherwise communicated in a way that does not reveal any underlying data from a competitor such as narrative industry reports, news reports, business commentaries or generalized industry survey results.A.R.S. § 44-1383(E)(2)": (a) MEANS NONPUBLIC DATANonpublic data"Nonpublic data": (a) Means information that is not widely available or easily accessible to the public. (b) Includes information about price, commercial terms and related products or services regardless of whether the data is attributable to a specific competitor or anonymized.A.R.S. § 44-1383(E)(3) THAT IS DERIVED FROM OR OTHERWISE PROVIDED BY ANOTHER PERSON THAT COMPETES IN THE SAME MARKET AS A PERSON OR A RELATED MARKET. (b) DOES NOT INCLUDE INFORMATION DISTRIBUTED, REPORTED OR OTHERWISE COMMUNICATED IN A WAY THAT DOES NOT REVEAL ANY UNDERLYING DATA FROM A COMPETITOR SUCH AS NARRATIVE INDUSTRY REPORTS, NEWS REPORTS, BUSINESS COMMENTARIES OR GENERALIZED INDUSTRY SURVEY RESULTS. 3. "NONPUBLIC DATANonpublic data"Nonpublic data": (a) Means information that is not widely available or easily accessible to the public. (b) Includes information about price, commercial terms and related products or services regardless of whether the data is attributable to a specific competitor or anonymized.A.R.S. § 44-1383(E)(3)": (a) MEANS INFORMATION THAT IS NOT WIDELY AVAILABLE OR EASILY ACCESSIBLE TO THE PUBLIC. (b) INCLUDES INFORMATION ABOUT PRICE, COMMERCIAL TERMS AND RELATED PRODUCTS OR SERVICES REGARDLESS OF WHETHER THE DATA IS ATTRIBUTABLE TO A SPECIFIC COMPETITOR OR ANONYMIZED.
This section creates a new prohibition against using algorithmic price fixing to establish residential rental rates in Arizona. The core prohibition in subsection (A) is categorical — no person may use algorithmic price fixing to set a rental rate. Subsections (B) and (C) then establish an evidentiary framework: if the Attorney General proves that a person used algorithmic pricing incorporating nonpublic competitor data, used it for residential rental rates, and at least two competitors used the same algorithm in the same or related markets, a rebuttable presumption of antitrust violation arises. The defendant may rebut the presumption only by clear and convincing evidence that it did not develop or distribute the algorithm and lacked actual or constructive knowledge that the algorithm contained nonpublic competitor data.
The definitions are notably broad. Algorithmic pricing encompasses any computational process that recommends or sets prices affecting interstate or foreign commerce, expressly including machine learning and AI techniques. Nonpublic competitor data covers data derived from or provided by a competitor, whether attributed or anonymized, but excludes generalized industry reports, news, and survey results. Enforcement is reserved exclusively to the Attorney General under subsection (D).