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A 6765

Enacts the preventing algorithmic pricing discrimination act

2025 Regular Session Introduced by George Alvarez and 23 co-sponsors

The Preventing Algorithmic Pricing Discrimination Act bans discriminatory pricing by algorithms, ensuring transparency and consumer rights in retail, finance, and insurance sectors.

ORDERED TO THIRD READING CAL.173
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Bill Summary · A 6765

Summary of Bill A 6765: Preventing Algorithmic Pricing Discrimination Act

Bill Number: A 6765
Title: Preventing Algorithmic Pricing Discrimination Act
Status: Amended on Third Reading (6765A)
Introduced: March 12, 2025
Classification: Bill

Purpose and Intent

The Preventing Algorithmic Pricing Discrimination Act aims to address and mitigate the risks associated with algorithmic pricing practices that may lead to discrimination against consumers based on race, gender, or other protected characteristics. The bill seeks to ensure fairness and transparency in pricing algorithms used by businesses, particularly in sectors such as retail, insurance, and finance.

Key Provisions

The bill includes several significant provisions:

  • Prohibition of Discriminatory Pricing: Businesses are prohibited from using algorithms that result in discriminatory pricing practices. This includes any pricing strategies that disproportionately affect consumers based on their demographic characteristics.

  • Transparency Requirements: Companies utilizing algorithmic pricing must disclose the criteria and data used in their pricing models. This aims to provide consumers with insight into how prices are determined.

  • Regular Audits: The bill mandates regular audits of algorithmic pricing systems to ensure compliance with non-discrimination standards. These audits will be conducted by independent third parties.

  • Consumer Rights: Consumers will have the right to challenge pricing decisions that they believe are discriminatory. The bill establishes a framework for consumers to report and seek redress for unfair pricing practices.

  • Penalties for Non-Compliance: Businesses found in violation of the provisions may face penalties, including fines and potential legal action.

Affected Parties

The bill primarily affects:

  • Consumers: Individuals who may be subjected to unfair pricing practices based on their demographic characteristics.
  • Businesses: Companies that utilize algorithmic pricing models, particularly in industries such as retail, finance, and insurance.
  • Regulatory Bodies: Agencies responsible for enforcing consumer protection laws and overseeing compliance with the new regulations.

Procedural Timeline

The legislative actions for Bill A 6765 are as follows:

  • March 12, 2025: Bill introduced and referred to the Consumer Affairs and Protection Committee.
  • March 25, 2025:
    • Reported and referred to the Codes Committee.
    • Reported and referred to the Rules Committee.
    • Ordered to third reading in the Rules Committee.
    • Amended on third reading (version 6765A).

Related Legislation

  • S 7033: This bill serves as a companion to A 6765, indicating a parallel effort in the Senate to address similar issues regarding algorithmic pricing discrimination.

Conclusion

The Preventing Algorithmic Pricing Discrimination Act represents a significant step towards ensuring equitable pricing practices in an increasingly digital economy. By establishing clear guidelines and accountability measures for algorithmic pricing, the bill aims to protect consumers from discriminatory practices while promoting transparency and fairness in the marketplace.

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

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