This bill prohibits companies from using pricing algorithms that rely on nonpublic competitor data, aiming to prevent price-fixing and wage suppression through automated pricing systems. The legislation gives the Federal Trade Commission and Department of Justice the power to audit companies' pricing algorithms within 30 days of request, requiring detailed reports about how the algorithms work, what data they use, and whether they engage in price discrimination. Companies with $5 million or more in annual revenue must disclose to customers and workers that their prices or wages are set by algorithms, with additional details if price discrimination occurs. Violations carry civil penalties starting at $10,000 per day and can include major damages, with the rule taking effect 90 days after passage. The FTC must also study pricing algorithm use within two years to recommend whether additional oversight is needed in specific industries.
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