Majority Leader Aguiar-Curry’s AB 325 Signed by Governor Newsom, Protecting Consumers and Small Businesses from Corporate Price Fixing

(SACRAMENTO, CA) — On Monday, October 6, Governor Gavin Newsom signed Assembly Bill 325 (AB 325) into law. Authored by Majority Leader Cecilia Aguiar-Curry (D-Winters), this legislation is an important effort to address affordability for California families. It modernizes California’s antitrust laws to address algorithmic price fixing, closing loopholes that corporations have exploited to drive up the cost of living in the state.

“I authored AB 325 to make sure our laws keep up with the times and protect Californians from corporate cheaters,” said Majority Leader Aguiar-Curry. “Whether prices are fixed in a backroom or by using technology, it’s still breaking the rules—hurts working families, small businesses, employees, and stifles honest competition. With Governor Newsom’s signature, California is making clear we won’t tolerate practices that make life more expensive for our people.”

AB 325 strengthens the state’s Cartwright Act, ensuring businesses cannot use pricing algorithms to secretly coordinate and inflate prices on essentials such as housing, groceries, and healthcare. It also guards against using such practices to depress wages. The law protects independent and honest businesses by clearly defining unlawful conduct while including safe harbors for those businesses who may unknowingly use algorithmic tools, or may use them for legal activities. In response to business community concerns, the bill was amended to clarify that liability applies when companies coerce competitors to adopt pricing recommendations that come from their common pricing algorithm.

“Across industries, we’ve seen competitors game the system using technology to collude and drive up costs for everyday people,” said Catherine Bracy, CEO and founder of TechEquity. “With AB 325 now law, California is leading the nation by closing the door on algorithmic price fixing and ensuring fairer markets for everyone.”

Federal and state enforcement agencies are already pursuing cases of algorithmic collusion in sectors such as housing, food, and hospitality. With AB 325 signed, California is better equipped to confront these modern threats to competition and affordability.

"California's antitrust laws serve to protect our consumers and businesses, and focus on what makes markets work—fair competition," said California Attorney General Rob Bonta. "I thank Assemblymember Aguiar-Curry for authoring AB 325 to make it clear that when used to restrain trade, pricing algorithms are unlawful under California's Cartwright Act."

Majority Leader Aguiar-Curry concluded, “Most Californians, and Americans, believe that by playing by the rules, they have an opportunity to run successful businesses and have access to fairly-priced goods and wages. It’s the American way. And, it’s a big priority for California Democrats to tackle the high cost of living by making sure things can be affordable. AB 325 helps do that while protecting people against those who want to rig the system to only benefit themselves.”

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