In the near future, Sen. Hughes and I plan on introducing legislation to prohibit companies from colluding through pricing algorithms, raising prices, and costing Pennsylvanians millions of dollars.
 
As our world becomes more interconnected and complicated, the rise of algorithmic and artificial intelligence (AI) aided pricing structures have undoubtedly become more prevalent in the goods and services we use every day. The use of these algorithms has raised concerns of heightened prices and extraordinary terms, that hurt the Pennsylvania consumer. More specifically, these structures, while employed by firms within the same industry, produce collusive-like scenarios where consumers pay artificially high prices.
 
In an active case, Kalibrate used an algorithm to recommend gasoline prices, using nonpublic competitor data, across California. The complaint alleges that the algorithm raised the price of gasoline by 30 cents higher than the market would have set, with each cent costing consumers $134 million annually. Under this algorithm, consumers spend up to $144 extra yearly. Although this case is just in California, Kalibrate operates within every State, including Pennsylvania.

This legislation creates a prohibition on the distribution and use of collusive algorithmic pricing structures within the same relevant markets in addition to the use of common AIs to set prices. This bill will allow for quicker and more accurate enforcement of Federal Antitrust Law, promoting a more competitive market and allowing for lower prices, benefiting Pennsylvanians.
 
We hope you will join us in cosponsoring this legislation.