Pricing Algorithms: Ending Collusion and Increasing Transparency for Consumers
This new law aims to prevent price collusion among companies using algorithms to set prices. Companies will need to disclose if prices are set by algorithms and will be prohibited from using competitor data to train them. This is intended to protect consumers from inflated prices and employees from suppressed wages.
Key points
Companies are prohibited from using pricing algorithms that incorporate nonpublic competitor data to prevent artificial price increases.
Consumers and employees will be informed if product, service, or wage prices are set by pricing algorithms.
Authorities can request detailed reports from companies on how their pricing algorithms operate to ensure fair market practices.
Violations of the law will result in significant financial penalties, discouraging unfair practices.
Introduced
Citizen Poll