- Gibson Martucci
- 916-319-3104
- gibson.martucci@asm.ca.gov
(SACRAMENTO, CA) — Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters) introduced Assembly Bill 325 today, a coalition-backed bill designed to hold providers and users of price-fixing algorithms accountable for undermining competition, raising prices, and restricting the supply of essential goods across California’s economy. The bill prohibits the use or distribution of pricing algorithms that facilitate an agreement not to compete on price, supply, or other commercial terms for goods or services.
The urgency of Aguiar-Curry’s bill is highlighted by several ongoing federal and state cases targeting alleged price-fixing schemes in critical industries such as rental housing, food processing, and hospitality. These cases include actions by the United States Department of Justice (DOJ), California Attorney General Rob Bonta, and multiple private class action lawsuits.
In August 2024, Attorney General Bonta joined the DOJ in filing a federal antitrust lawsuit against a prominent real estate property management software company and several large landlords. The suit alleges that price-fixing software contributed to rising rents and restricted housing availability during California’s housing crisis. Similarly, in 2023, the DOJ initiated federal antitrust litigation against a data management company for alleged price-fixing practices in the meat processing industry. The Federal Trade Commission and the DOJ have also filed statements of interest in cases involving the suspected illegal use of price-fixing algorithms in the hotel sector.
"It doesn’t matter if price fixing happens behind closed doors or through artificial intelligence, its wrong either way. California shouldn’t tolerate practices that exploit working families, families that already can’t afford the high costs of living," said Majority Leader Cecilia Aguiar-Curry. “This bill will help families afford to live, including keep our neighborhoods accessible when it comes to rents.”
Emphasizing the importance of swift action:
CEO and Founder of TechEquity Catherine Bracy says, “Corporations like grocery stores and Wall Street landlords are using AI to squeeze as much money as possible out of everyday people. We need to take action to catch up to the speed and scale at which tech is enabling unfair pricing practices that inflate costs and hurt working families.”
Director of Economic Security California Action, Teri Olle affirmed, "When big businesses misuse AI to fix prices and pad their profits, costs skyrocket—and everyone knows that’s unfair. AB 325 would prohibit algorithmic price fixing, make life more affordable, and create a competitive marketplace that works better for everyone.”
“Price fixing algorithms have enabled widespread, illegal cartels across our economy and have flourished under a loophole in existing law,” said Lee Hepner, senior legal counsel at the American Economic Liberties Project. “Whether made in a smoke-filled back room or buried in a piece of code, an illegal agreement not to compete leads to increased prices and restricted supply of essential goods.”
Aguiar-Curry concludes, “AB 325 shows California is working to protect our people and ensuring a competitive marketplace for all so AI isn’t misused to jack-up prices.”
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Assemblymember Cecilia Aguiar-Curry represents California’s 4th Assembly District, which includes all of Lake, Colusa, Napa, and Yolo Counties, and part of Sonoma County. She serves as the Assembly Majority Leader and Chair of the California Women’s Legislative Caucus.