SB-295 • 2026

California Preventing Algorithmic Collusion Act of 2025.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Hurtado
Last action: 2025-09-13
Official status: Reconsideration granted.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not specify the exact nature of 'reasonable due diligence' required to avoid punishment.

California Law Against Algorithmic Collusion

This California law prohibits companies from using pricing algorithms that rely on competitor data to set prices and penalizes violations with fines up to $25,000 per violation.

What This Bill Does

It makes it illegal for a person or company to use, recommend, or distribute a pricing algorithm if they know or should know that the algorithm uses competitor data.
Companies can avoid punishment by showing they tried their best to stay legal before using an algorithm's recommendations.
The law does not apply if all competitor data in the algorithm is older than one year.
It allows government lawyers to sue those who break these rules and ask for money back, extra damages, fines up to $25,000 per violation, or other help.

Who It Names or Affects

Companies that use pricing algorithms
People who make or distribute pricing algorithms

Terms To Know

Pricing Algorithm: A computer program used to set prices for products or services.
Competitor Data: Information about what other companies are selling and how much they charge.

Limits and Unknowns

The law does not apply if all competitor data in the algorithm is older than one year.
Credit scores or tools from commercial credit reporting agencies are exempt from this law.

Bill History

2025-09-13 California Legislative Information
Reconsideration granted.
2025-09-13 California Legislative Information
Motion to reconsider made by Assembly Member Bauer-Kahan.
2025-09-13 California Legislative Information
Read third time. Refused passage. (Ayes 13. Noes 24. Page 3448.)
2025-09-13 California Legislative Information
Joint Rule 61(a)(14) and 51(a)(4) suspended. (Ayes 59. Noes 20. Page 3413.)
2025-09-09 California Legislative Information
Joint Rule 61(a)(13) suspended. (Ayes 60. Noes 20. Page 3128.)
2025-09-03 California Legislative Information
Read second time. Ordered to third reading.
2025-09-02 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-08-29 California Legislative Information
From committee: Do pass as amended. (Ayes 10. Noes 4.) (August 29).
2025-08-20 California Legislative Information
August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-17 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 4.) (July 16). Re-referred to Com. on APPR.
2025-07-14 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on P. & C.P.
2025-07-02 California Legislative Information
From committee: Do pass and re-refer to Com. on P. & C.P. (Ayes 9. Noes 3.) (July 1). Re-referred to Com. on P. & C.P.
2025-06-27 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-06-26 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-06-09 California Legislative Information
Referred to Coms. on JUD. and P. & C.P.
2025-06-04 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-03 California Legislative Information
Read third time. Passed. (Ayes 29. Noes 10. Page 1470.) Ordered to the Assembly.
2025-05-23 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 5. Noes 1. Page 1194.) (May 23).
2025-05-20 California Legislative Information
Set for hearing May 23.
2025-05-19 California Legislative Information
May 19 hearing: Placed on APPR. suspense file.
2025-05-09 California Legislative Information
Set for hearing May 19.
2025-05-06 California Legislative Information
Re-referred to Com. on APPR.
2025-05-06 California Legislative Information
Withdrawn from committee.
2025-05-05 California Legislative Information
Read second time and amended. Re-referred to Com. on PUB. S.
2025-05-01 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on PUB. S. (Ayes 11. Noes 2. Page 939.) (April 29).
2025-04-22 California Legislative Information
Set for hearing April 29.
2025-04-17 California Legislative Information
April 22 hearing postponed by committee.
2025-04-11 California Legislative Information
Set for hearing April 29 in PUB. S. pending receipt.
2025-04-10 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-04-03 California Legislative Information
Set for hearing April 22.
2025-02-19 California Legislative Information
Referred to Coms. on JUD. and PUB. S.
2025-02-07 California Legislative Information
From printer. May be acted upon on or after March 9.
2025-02-06 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 295, as amended, Hurtado.
California Preventing Algorithmic Collusion Act of 2025.
Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various responsibilities on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement through civil actions.
This bill would enact the California Preventing Algorithmic Collusion Act of 2025, to prohibit a
person
person, as described,
from distributing or making recommendations based on the use of a pricing algorithm to 2 or more competitors, as defined, under specified circumstances, if the person knows or should know that the pricing algorithm processes competitor data, as defined.
This bill would also prohibit a person from using the recommendation of a pricing algorithm that processes competitor data, as specified, if the person knows or should know that the pricing algorithm uses or incorporates competitor data. The bill would establish an affirmative defense to liability under this prohibition for a person who demonstrates by a preponderance of evidence that they exercised reasonable due diligence before using the recommendations of a pricing algorithm, as specified. The bill would specify when the use, recommendation, or distribution of a pricing algorithm constitutes separate violations. The bill would declare that these provisions do not
apply if all of the competitor data processed by the pricing algorithm was collected more than one year before the use, recommendation, or distribution of the pricing algorithm. The bill would declare that a contract that violates these provisions is to that extent void.
This bill would authorize the Attorney General, a district attorney, a county counsel, or a city attorney to bring a civil action for violation of the above-described provisions to seek restitution, punitive damages, a civil penalty of up to $25,000 per violation, and other appropriate relief, as provided.
The bill would declare that its provisions shall not impair or limit the applicability of antitrust
laws.
laws, as defined. The bill would exempt from its provisions the development,
distribution, output, or use of a credit score or other computational tool either subject to specified law or provided by a commercial credit reporting agency, as specified.

Current Bill Text

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