To prevent anticompetitive conduct through the use of pricing algorithms by prohibiting the use of pricing algorithms that can facilitate collusion through the use of nonpublic competitor data, creating an antitrust law enforcement audit tool, increasing transparency, and enforcing violations through the Sherman Act and Federal Trade Commission Act, and for other purposes.
About This Bill
Committee
Latest Action · January 30, 2024
Read twice and referred to the Committee on the Judiciary.
The Preventing Algorithmic Collusion Act of 2024 prohibits companies from using pricing algorithms that rely on nonpublic competitor data to set or recommend prices and commercial terms. The bill applies to any company using computational processes, including artificial intelligence, to determine pricing, and it affects businesses across industries that employ such algorithms. Companies face civil penalties of at least $10,000 per day of violation or the total price of products sold using prohibited algorithms, and the law establishes a presumption of illegal price-fixing when companies distribute algorithms to multiple competitors or use them to set prices in the same market. The bill also requires companies with over $5 million in annual revenue to disclose to customers and workers when algorithmic pricing is being used and whether different prices are offered to different people. Additionally, the Federal Trade Commission must conduct a study within two years examining how widely pricing algorithms are used, their competitive effects, and whether additional regulations are needed.
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