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) "Commercial termsCommercial terms"Commercial terms" means any of the following: (1) Level of service; (2) Availability; (3) Output, including quantities of products produced or distributed or the amount or level of service provided; (4) Rebates or discounts made available.R.C. § 1331.01(A)" means any of the following: (1) Level of service; (2) Availability; (3) Output, including quantities of products produced or distributed or the amount or level of service provided; (4) Rebates or discounts made available.
(B) "DistributeDistribute"Distribute," "distribution," and "distributing" include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.R.C. § 1331.01(B)," "distribution," and "distributing" include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.
(C) "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" 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. "Nonpublic competitor data" 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.R.C. § 1331.01(C)" means nonpublic dataNonpublic data"Nonpublic data" means information that is not widely available or easily accessible to the public, including information about price, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized.R.C. § 1331.01(D) that is derived from or otherwise provided by another person that competes in the same market as a person, or a related market. "Nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" 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. "Nonpublic competitor data" 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.R.C. § 1331.01(C)" 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.
(D) "Nonpublic dataNonpublic data"Nonpublic data" means information that is not widely available or easily accessible to the public, including information about price, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized.R.C. § 1331.01(D)" means information that is not widely available or easily accessible to the public, including information about pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A), commercial termsCommercial terms"Commercial terms" means any of the following: (1) Level of service; (2) Availability; (3) Output, including quantities of products produced or distributed or the amount or level of service provided; (4) Rebates or discounts made available.R.C. § 1331.01(A), and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized.
(F) "Pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F)" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial term that is in or affecting commerce in this state.
Section 1331.01 is amended to add new defined terms required by the bill's operative provisions. The most significant addition is pricing algorithm, defined broadly to cover any computational process — including those derived from machine learning or AI — that recommends or sets a price or commercial term affecting Ohio commerce. The section also introduces definitions for nonpublic competitor data, nonpublic data, commercial terms, and distribute. Existing definitions of "person," "public office," and "trust" are re-lettered and adjusted for cross-references.
Every combination, contract, or agreement in the form of a trust, including any violation of section 1331.05 of the Revised Code, is declared to be a conspiracy against trade and illegal. No person shall engage in such conspiracy or take part therein, or aid or advise in its commission, or, as principal, manager, director, agent, servant, or employer, or in any other capacity, knowingly carry out any of the stipulations, purposes, pricesPrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A), or rates, or furnish any information to assist in carrying out such purposes, or orders thereunder, or in pursuance thereof, or in any manner violate sections 1331.01 to 1331.14 of the Revised Code. Each day's violation of this section is a separate offense.
Section 1331.04 is amended to declare that any violation of new § 1331.05 (the pricing algorithm nonpublic competitor data prohibition) constitutes a conspiracy against trade and is illegal. This amendment integrates the new pricing algorithm provisions into Ohio's existing Valentine Act antitrust enforcement framework, making violations subject to the same criminal and civil penalties as other antitrust conspiracies. Each day's violation is a separate offense.
(B) 1 No person shall use or distributeDistribute"Distribute," "distribution," and "distributing" include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.R.C. § 1331.01(B) a pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) that uses, incorporates, or is trained with nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" 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. "Nonpublic competitor data" 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.R.C. § 1331.01(C).
(C)(1)–(2) 2 In any civil or criminal action or proceeding for a violation of sections 1331.01 to 1331.14 of the Revised Code, the court shall presume that the defendant entered into an agreement, contract, combination, or conspiracy against trade if the plaintiff establishes either or both of the following: (1) That the defendant distributed the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) to two or more persons and either or both of the following applies: (a) The defendant intended the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) to be used to set or recommend a pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial term of a product or service in the same market or a related market. (b) Two or more persons used the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) to set or recommend a pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial term of a product or service in the same market or a related market. (2) That both of the following apply: (a) The defendant used the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) to set or recommend a pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial term of a product or service. (b) The pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) was used by another person to set or recommend a pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial term of a product or service in the same market or a related market.
(D) 2 The presumption described in division (C) of this section does not apply to a defendant if the defendant did not develop or distributeDistribute"Distribute," "distribution," and "distributing" include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.R.C. § 1331.01(B) the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) and demonstrates, by clear and convincing evidence, that the defendant did not have actual knowledge and could not have reasonably known that the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) used nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" 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. "Nonpublic competitor data" 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.R.C. § 1331.01(C).
(E) 3 In a civil case in which the presumption described in division (C) of this section applies, any person that distributed the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) and knew, or could reasonably have known, that the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) would use, incorporate, or be trained with nonpublic competitor dataNonpublic competitor data"Nonpublic competitor data" 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. "Nonpublic competitor data" 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.R.C. § 1331.01(C) is jointly and severally liable for any violation of sections 1331.01 to 1331.14 of the Revised Code.
(F) Nothing in this section impairs or limits the applicability of this chapter or any other state or federal antitrust laws.
Section 1331.05 is the bill's core antitrust provision. It flatly prohibits any person from using or distributing a pricing algorithm that uses, incorporates, or is trained with nonpublic competitor data. It then creates a rebuttable presumption of antitrust conspiracy where a plaintiff shows that a pricing algorithm was distributed to or used by competing market participants — either because the distributor intended same-market use, or because two or more competitors in fact used the algorithm to set prices or commercial terms in the same or related market.
The presumption does not apply to a defendant who neither developed nor distributed the algorithm and demonstrates by clear and convincing evidence that it did not know and could not reasonably have known the algorithm used nonpublic competitor data. Algorithm distributors who knew or reasonably should have known about the nonpublic competitor data are jointly and severally liable for resulting antitrust violations.
(A)(2) 4 Information on the development or distribution of a pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F), including information on the person responsible for the development or distribution and how the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) works.
Section 1331.16 is amended to expand the definition of "documentary material" subject to the Attorney General's investigative demand authority. The new category explicitly includes information on the development or distribution of a pricing algorithm, including the identity of the person responsible and how the pricing algorithm works. This ensures the AG can compel production of algorithm-specific technical and business documentation in antitrust investigations.
(B)(1)–(2) 5 A person that owns or operates a commercial enterprise with five million dollars or more in gross receiptsGross receipts"Gross receipts" has the same meaning as in section 5751.01 of the Revised Code.R.C. § 1331.50(A)(1) for the most recently completed federal taxable year, and that directly or indirectly provides a service or product that uses a pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) to recommend or set a pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial term, shall clearly disclose the following: (1) To a customer, before the customer purchases the relevant product or service, that the pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or a commercial term is set or recommended by a pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F); (2) To a current or prospective employee or independent contractor, that the pricePrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or a commercial term for services rendered as an employee or independent contractor is set or recommended by a pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F).
(C)(1)–(3) 5 A disclosure required by division (B)(1) or (2) of this section shall state all of the following: (1) Whether the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) sets or recommends different pricesPrice"Price" means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.R.C. § 1331.05(A) or commercial termsCommercial terms"Commercial terms" means any of the following: (1) Level of service; (2) Availability; (3) Output, including quantities of products produced or distributed or the amount or level of service provided; (4) Rebates or discounts made available.R.C. § 1331.01(A) for either or both of the following: (a) Different customers seeking identical or nearly identical products or services; (b) Employees or independent contractors providing substantially similar services. (2) Whether the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F) was developed or distributed by a person other than the person making the disclosure; (3) The identity of the person that developed or distributed the pricing algorithmPricing algorithm"Pricing algorithm" means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term that is in or affecting commerce in this state.R.C. § 1331.01(F).
(D) A violation of this section is an unfair or deceptive act or practice in violation of section 1345.02 of the Revised Code.
Section 1331.50 imposes disclosure obligations on commercial enterprises with $5 million or more in gross receipts that use pricing algorithms to set or recommend prices or commercial terms. Covered entities must disclose to customers before purchase, and to current or prospective employees and independent contractors, that a pricing algorithm sets or recommends the price or commercial term. Disclosures must also state whether the algorithm sets different prices for different customers or workers, whether a third party developed or distributed the algorithm, and the identity of that third party. Violations constitute unfair or deceptive acts under Ohio's Consumer Sales Practices Act (R.C. § 1345.02).