The bill amends sections 1331.01, 1331.04, and 1331.16 of the Revised Code and enacts new sections 1331.05 and 1331.50 to regulate the use of pricing algorithms. It introduces key definitions such as "commercial terms," "pricing algorithm," and "nonpublic competitor data," which clarify the legislation's scope. The bill prohibits the use or distribution of pricing algorithms that rely on nonpublic competitor data and establishes a presumption of conspiracy against trade if such algorithms are distributed to multiple parties or used to set prices in related markets. Additionally, it grants the attorney general investigative powers to demand documentary material related to potential violations, specifying compliance procedures and the rights of individuals served with such demands.

Moreover, the bill requires commercial enterprises with gross receipts of five million dollars or more to disclose to customers and employees that prices or commercial terms are determined by a pricing algorithm. This includes information on whether the algorithm sets different prices for similar products or services and whether it was developed by an external party. Violations of these disclosure requirements will be deemed unfair or deceptive acts under existing consumer protection laws. The bill also repeals certain existing sections of the Revised Code, potentially related to previous pricing regulations, aiming to enhance transparency in pricing practices and protect consumers and workers from misleading algorithms.

Statutes affected:
As Introduced: 1331.01, 1331.04, 1331.16