The bill amends and repeals several sections of the Revised Code to establish new regulations regarding the use of pricing algorithms. It introduces key definitions such as "commercial terms," "pricing algorithm," and "nonpublic competitor data," which clarify the law's scope. The bill prohibits the use or distribution of pricing algorithms that utilize nonpublic competitor data and establishes a presumption of conspiracy against trade for defendants who distribute such algorithms to multiple parties or use them to set prices in related markets. Additionally, it grants the attorney general investigative powers to demand documentary material related to potential violations, outlining compliance procedures and the rights of individuals served with these demands.

Furthermore, the bill imposes new disclosure requirements on commercial enterprises with gross receipts of five million dollars or more that use pricing algorithms. These businesses must inform customers and employees that prices or terms are determined by a pricing algorithm, including details on whether different prices are set for similar products or services and the identity of any external party involved in developing the algorithm. Violations of these disclosure requirements are classified as unfair or deceptive acts under existing consumer protection laws. Overall, the bill aims to enhance transparency and competition in pricing practices while streamlining the legal framework surrounding pricing algorithms and their disclosure.

Statutes affected:
As Introduced: 1331.01, 1331.04, 1331.16