California AB 325, the Preventing Algorithmic Price Fixing Law, amends the state’s antitrust statute, the Cartwright Act, to target shared pricing algorithms. It has been in effect since January 1, 2026.
What California AB 325 Prohibits
It is now unlawful to use or distribute a common pricing algorithm, meaning software used by two or more businesses that ingests competitor data to recommend or set prices, as part of an agreement to restrain trade. It is also unlawful to coerce another business into adopting a price the algorithm recommends. The law treats algorithmic coordination as a modern form of price fixing.
A Lower Bar for Plaintiffs
The law additionally lowers the pleading standard for antitrust conspiracy claims, making it easier for plaintiffs to survive early dismissal. That procedural change raises litigation exposure even for companies that never intended to collude.
Any business using third-party revenue management or dynamic pricing software that draws on competitor data should review that tooling for California exposure. If your pricing vendor pools competitor inputs, this statute now applies to you.
Source: California Legislative Information: AB 325
Report a violation: If you believe a business is violating this law, you can file a complaint with the California Attorney General Consumer Protection.
