Preventing Algorithmic Collusion: Banning Secret Data Use and Increasing Price Transparency.
This law aims to protect consumers and workers by banning the use of pricing algorithms that rely on secret competitor data to artificially inflate prices or set unfair terms. It mandates that companies disclose to customers and employees when a price or wage is determined by an algorithm. Companies must also reveal if the algorithm engages in price discrimination, promoting fairer competition and potentially lower costs.
Key points
Bans the use of pricing algorithms that incorporate nonpublic competitor data, aiming to prevent digital price collusion.
Requires companies to disclose to customers and workers if prices or wages are set or recommended by an algorithm.
Makes it easier for authorities to prosecute companies for price fixing if they use prohibited algorithms, imposing substantial civil penalties (minimum $10,000 per day).
Increases transparency regarding price discrimination: companies must disclose if the algorithm sets different prices for different customers for the same product or different rates for similar worker services.
Expired
Citizen Poll