California Algorithmic Pricing Act (AB 325)

CAFor all AI companiesMediumseverityIn effect

In effect since

Overview

Prohibits use of common pricing algorithms as part of anticompetitive agreements. Covers any methodology including software used by two or more persons that uses competitor data to recommend, set, or influence prices. Lowers pleading standard for all Cartwright Act violations. Targets algorithmic collusion such as rental pricing algorithms like RealPage. Significant for any company using shared pricing software.

This is an AI-specific state law.

California AI regulation guide lists every tracked rule for this jurisdiction with timelines and obligation tallies.

Who this applies to

This regulation applies to both companies that build AI products and companies that use AI tools from other vendors.

AI categories covered

  • Consumer-facing AI

What this requires you to do

  • prohibited practices

    prohibited practices. Review this obligation in the source text.

  • Record-keeping required

    Maintain records. Keep documentation of your AI systems, decisions made, and compliance activities.

    Obligation explainer: Record-keeping

Enforcement and penalties

Existing Cartwright Act remedies: treble damages, injunctive relief, criminal penalties up to $1,000,000 for corporations.

This regulation includes a private right of action, which means individuals can file lawsuits directly. This significantly increases litigation risk.

Legislative history

How this law got here

  1. effective

    Takes effect

  2. signed

    Signed by Governor Newsom

    View source →

Source

Read the full text

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB325

Last verified: April 9, 2026

Always verify current language and amendments at the official source.

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