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 information related to pricing algorithms, as defined. The bill would require specified officers to certify the accuracy of the report, subject to civil penalties, as specified.
This bill would prohibit a person from using or distributing any pricing algorithm if the person has actual knowledge that the pricing algorithm uses or incorporates competitor data, as defined. 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, if the person has actual knowledge that the pricing algorithm uses or incorporates competitor data. 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 the greater of the actual damages caused by the violation or a civil penalty of up to $1,000,000, or other appropriate relief, as provided.