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.
This act shall be known, and may be cited, as the Preventing Algorithmic Price Fixing Act.
Section 1 establishes the short title of the act as the Preventing Algorithmic Price Fixing Act. It imposes no substantive obligations.
(a) 1 In addition to any other law, a sellerSeller\"Seller\" means either of the following: (i) A person or business entity who sells or leases a good or service to a consumer. (ii) A landlord. \"Seller\" includes a person or a business entity that utilizes a price-fixing algorithm on behalf of a person or business described in subparagraph (A).Bus. & Prof. Code § 22949.85(c)(4) shall not use a price-fixing algorithmPrice-fixing algorithm\"Price-fixing algorithm\" means a software, system, process, algorithmic program, or artificial intelligence that does both of the following: (A) Accepts the historical or contemporaneous nonpublic input data of two or more sellers on the price, price change, or supply level of a good or service or rent or occupancy level of rental property from one or more sellers. (B) Processes the nonpublic input data described in subparagraph (A) for the purpose of producing a pricing or rental strategy.Bus. & Prof. Code § 22949.85(c)(3) to set either of the following: (1) A price or supply level of a good or service. (2) A rent or occupancy level of rental property.
(b) The Attorney General, in the name of the people of the State of California, or a city attorney or county counsel, in the name of the city or county, may file a civil action for a violation of this section for damages, injunctive relief, restitution, or civil penalties of up to one thousand dollars ($1,000) per violation, or any combination of those remedies. The court shall award reasonable attorney's fees and costs to the Attorney General, city attorney, or county counsel, as applicable, if they are the prevailing party in the action.
(c)(1) \"Artificial intelligenceArtificial intelligence\"Artificial intelligence\" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments.Bus. & Prof. Code § 22949.85(c)(1)\" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments.
(c)(2) \"Nonpublic input dataNonpublic input data\"Nonpublic input data\" means data that is competitively sensitive, including, but not limited to, price, output, customers, or sales territory.Bus. & Prof. Code § 22949.85(c)(2)\" means data that is competitively sensitive, including, but not limited to, price, output, customers, or sales territory.
(c)(3) \"Price-fixing algorithmPrice-fixing algorithm\"Price-fixing algorithm\" means a software, system, process, algorithmic program, or artificial intelligence that does both of the following: (A) Accepts the historical or contemporaneous nonpublic input data of two or more sellers on the price, price change, or supply level of a good or service or rent or occupancy level of rental property from one or more sellers. (B) Processes the nonpublic input data described in subparagraph (A) for the purpose of producing a pricing or rental strategy.Bus. & Prof. Code § 22949.85(c)(3)\" means a software, system, process, algorithmic program, or artificial intelligenceArtificial intelligence\"Artificial intelligence\" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments.Bus. & Prof. Code § 22949.85(c)(1) that does both of the following: (A) Accepts the historical or contemporaneous nonpublic input data of two or more sellersSeller\"Seller\" means either of the following: (i) A person or business entity who sells or leases a good or service to a consumer. (ii) A landlord. \"Seller\" includes a person or a business entity that utilizes a price-fixing algorithm on behalf of a person or business described in subparagraph (A).Bus. & Prof. Code § 22949.85(c)(4) on the price, price change, or supply level of a good or service or rent or occupancy level of rental property from one or more sellersSeller\"Seller\" means either of the following: (i) A person or business entity who sells or leases a good or service to a consumer. (ii) A landlord. \"Seller\" includes a person or a business entity that utilizes a price-fixing algorithm on behalf of a person or business described in subparagraph (A).Bus. & Prof. Code § 22949.85(c)(4). (B) Processes the nonpublic input dataNonpublic input data\"Nonpublic input data\" means data that is competitively sensitive, including, but not limited to, price, output, customers, or sales territory.Bus. & Prof. Code § 22949.85(c)(2) described in subparagraph (A) for the purpose of producing a pricing or rental strategy.
(c)(4) \"SellerSeller\"Seller\" means either of the following: (i) A person or business entity who sells or leases a good or service to a consumer. (ii) A landlord. \"Seller\" includes a person or a business entity that utilizes a price-fixing algorithm on behalf of a person or business described in subparagraph (A).Bus. & Prof. Code § 22949.85(c)(4)\" means either of the following: (i) A person or business entity who sells or leases a good or service to a consumer. (ii) A landlord. (B) \"SellerSeller\"Seller\" means either of the following: (i) A person or business entity who sells or leases a good or service to a consumer. (ii) A landlord. \"Seller\" includes a person or a business entity that utilizes a price-fixing algorithm on behalf of a person or business described in subparagraph (A).Bus. & Prof. Code § 22949.85(c)(4)\" includes a person or a business entity that utilizes a price-fixing algorithmPrice-fixing algorithm\"Price-fixing algorithm\" means a software, system, process, algorithmic program, or artificial intelligence that does both of the following: (A) Accepts the historical or contemporaneous nonpublic input data of two or more sellers on the price, price change, or supply level of a good or service or rent or occupancy level of rental property from one or more sellers. (B) Processes the nonpublic input data described in subparagraph (A) for the purpose of producing a pricing or rental strategy.Bus. & Prof. Code § 22949.85(c)(3) on behalf of a person or business described in subparagraph (A).
This section is the bill's sole operative provision. Subdivision (a) prohibits any seller from using a price-fixing algorithm to set prices, supply levels, rents, or occupancy levels. The prohibition is framed as supplemental — it applies "in addition to any other law," preserving antitrust and other existing causes of action.
Subdivision (b) vests enforcement authority exclusively in the Attorney General, city attorneys, and county counsel, with a menu of remedies including damages, injunctive relief, restitution, and civil penalties up to $1,000 per violation. Attorney's fees are recoverable by prevailing government plaintiffs. There is no private right of action.
Subdivision (c) defines four key terms. The definition of price-fixing algorithm is functionally two-pronged: the algorithm must (1) accept historical or contemporaneous nonpublic competitively sensitive data from two or more sellers and (2) process that data to produce a pricing or rental strategy. The definition of seller is broad, capturing persons or businesses that sell or lease goods and services to consumers, landlords, and any person or entity that operates a price-fixing algorithm on behalf of such persons — thereby reaching third-party algorithmic pricing vendors.