Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various responsibilities on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement through civil actions.
This bill would enact the California Preventing Algorithmic Collusion Act of 2025, to require a person, as defined, upon request of the Attorney General, to provide to the Attorney General a written report on each pricing algorithm, as defined, identified in the request. The bill would require specified officers to certify, under penalty of perjury, the accuracy of the report. By expanding the crime of perjury, this bill would impose a state-mandated local program.
This bill would prohibit a person from using or distributing any pricing algorithm that uses, incorporates, or was trained with, competitor data. The bill would prohibit a person from distributing a pricing algorithm, or making recommendations based on the use of a pricing algorithm that uses, incorporates, or was trained with, competitor data, as specified. The bill would declare that a contract that violates these provisions is to that extent void.
This bill would authorize the Attorney General or a district attorney to bring a civil action for violation of the above-described provisions to seek, among other recoveries, specified civil penalties or other appropriate relief, as provided. This bill would include in these recoveries forfeiture of charter rights, franchises, or privileges and powers exercised by a defendant corporation or association, dissolution of the defendant corporation or association, and revocation of the powers, franchises, or functions of a defendant foreign corporation or association, as provided.
This bill would require a person that has $5,000,000 or more in annual revenue that uses a pricing algorithm to recommend or set a price or commercial term to make certain disclosures, as specified, including to a customer, before the customer purchases the relevant product or service, that the price or a commercial term is set or recommended by a pricing algorithm. The bill would provide that failure to comply with these disclosure provisions constitutes an unfair trade practice, as specified. The bill would authorize the Attorney General to bring a civil action for violation of these disclosure provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.