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AB 325

Cartwright Act: violations.

2025-2026 Regular Session Introduced by Cecilia Aguiar-Curry and 1 co-sponsor

AB 325 strengthens California's Cartwright Act by banning common pricing algorithms that hinder competition, making it easier to file complaints and protect consumers.

Chaptered by Secretary of State - Chapter 338, Statutes of 2025.
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Bill Summary · AB 325

Summary of AB 325: Cartwright Act Violations

Bill Information

  • Bill Number: AB 325
  • Title: Cartwright Act: Violations
  • Status: Chaptered by Secretary of State - Chapter 338, Statutes of 2025
  • Introduced: July 08, 2025
  • Author: Assemblymember Aguiar-Curry

Purpose and Intent

AB 325 aims to strengthen the enforcement of California's Cartwright Act, which addresses unlawful restraints of trade and antitrust violations. The bill seeks to clarify the requirements for filing complaints related to these violations and to prohibit the use of common pricing algorithms that may facilitate anti-competitive behavior.

Key Provisions

  1. Complaint Requirements:

    • The bill modifies the requirements for complaints under the Cartwright Act. It states that a complaint must only include factual allegations that make the existence of a contract, combination, or conspiracy to restrain trade plausible.
    • Importantly, it removes the requirement to allege facts that exclude the possibility of independent action by the parties involved.

  2. Prohibition of Common Pricing Algorithms:

    • AB 325 makes it unlawful for any person to use or distribute a common pricing algorithm as part of a contract or conspiracy that restrains trade or commerce.
    • It specifically prohibits coercing another person to adopt a price or commercial term recommended by such algorithms for similar products or services within California.

  3. Definitions:

    • The bill provides definitions for key terms, including "common pricing algorithm," "commercial term," and "person," ensuring clarity in enforcement.

  4. No Reimbursement Requirement:

    • The bill states that no reimbursement is required for local agencies or school districts for costs incurred due to the implementation of this act, as it creates new crimes or modifies existing penalties.

Impact

  • Affected Parties: The legislation primarily impacts businesses that utilize pricing algorithms and may engage in anti-competitive practices. It also affects consumers by potentially increasing competition and reducing prices.
  • Enforcement: The bill empowers the Attorney General to enforce these provisions more effectively, enhancing consumer protection and promoting fair competition in the marketplace.

Procedural Aspects

  • The bill was approved by the Governor on October 6, 2025, and has been chaptered into law. It underwent multiple readings and amendments in both the Assembly and Senate before final approval.

Conclusion

AB 325 represents a significant update to California's antitrust laws, aiming to curb anti-competitive practices associated with pricing algorithms and streamline the process for filing complaints under the Cartwright Act. By enhancing enforcement mechanisms, the bill seeks to foster a more competitive marketplace for consumers and businesses alike.

Compiled from official sources — confirm details with the bill’s official record.

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