California AB 325 (bans anticompetitive use of shared pricing algorithms)

California AB 325 (2025) — Cartwright Act Amendment on Common Pricing Algorithms
California · AB 325 (2025), amending the Cartwright Act (Cal. Bus. & Prof. Code 16700 et seq.)

Status
In effect
Took effect
January 1, 2026
Applies to
Businesses and individuals that use or distribute pricing algorithms in California commerce, including vendors of such tools.
Enforced by
California Attorney General and district attorneys (Cartwright Act enforcement), plus private litigants.

This law amends California's main antitrust statute, the Cartwright Act, to address algorithmic price-fixing. It makes it unlawful to use or distribute a common pricing algorithm — a methodology that uses competitor data to recommend, align, stabilize, set, or influence a price or term — as part of an agreement or conspiracy to restrain trade, or to coerce another party into adopting a recommended price. It also makes it easier to bring antitrust conspiracy claims.

Who is protected: Consumers and competitors in California markets harmed by algorithmic price coordination.

Legal detail

AB 325 amends the Cartwright Act to prohibit using or distributing a common pricing algorithm (a methodology using competitor data to recommend/align/stabilize/set/influence a price or term) as part of a contract, combination, or conspiracy in restraint of trade, or coercing another to adopt a recommended price, and lowers the antitrust-conspiracy pleading standard.

Key facts

JurisdictionCalifornia
LevelState
StrengthLimited
EnactedOctober 8, 2025
CitationAB 325 (2025), amending the Cartwright Act (Cal. Bus. & Prof. Code 16700 et seq.)
Private right of actionYes, individuals can sue
PenaltiesCartwright Act penalties — corporate criminal fines up to $6 million per violation (ceiling raised by companion bill SB 763) or twice the gross gain or loss, plus civil remedies.
Topicsautomated decision-making · consumer protection
Bill textAB-325 Cartwright Act: pricing algorithms

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