Existing law governs various business practices in this state, including certain laws relating to the use of technology.
This bill, the Preventing Algorithmic Price Fixing Act, would prohibit a person from selling, licensing, providing, or using a price-setting algorithm, as defined, with the intent that it be used by 2 or more competitors, as defined, in the same market if the person knows or should know that the algorithm processes nonpublic data, as defined, to set either: (1) a price or supply level of a good or service or (2) a rent or occupancy level of rental property. The bill would provide a person an affirmative defense to liability if the person exercised reasonable due diligence, as specified. The bill would authorize the Attorney General or a district attorney, city attorney, or county counsel to file a civil action for violations of these provisions, as specified, including for a civil penalty of up to $1,000 per violation, as specified.