Press Release

Assembly Committee Advances Critical Legislation Banning the Use of Tech to Fix Prices, A Win for California Consumers

05. 01. 2025

ESCAA applauds legislators for advancing AB 325, a bill that would prohibit companies from using algorithms to coordinate prices.

Sacramento, CA – California’s Assembly Privacy and Consumer Protection Committee today advanced AB 325 (Aguiar-Curry), legislation that would prohibit companies from using digital tools, like software, AI, and other technology, to coordinate prices or to restrict supply.  Algorithmic price fixing is a modern form of collusion that’s driving up costs for everything from housing to groceries. Teri Olle, Director of Economic Security California Action (ESCAA), issued the following statement applauding the committee:

When big corporations use technology to coordinate price hikes rather than compete fairly, everyday Californians pay the price. Algorithmic price fixing is making life more expensive across our state. Whether it’s property management companies using software to artificially inflate rents or food producers sharing data to simultaneously hike the price of frozen French fries, these practices harm California families who are already struggling with the high cost of living. And we must be clear that this type of collusion is just as illegal as any deal that gets made in a smoke-filled room. 

The advancement of AB 325 represents a critical step toward tackling California’s affordability crisis and establishes a simple principle: you can’t hide behind digital tools to break the rules. This legislation ensures big corporations can’t use technology to circumvent long-standing competition laws. Leveling the playing field is good for everyone. When competitors strive to win over customers with better prices or superior products, consumers, small businesses, and communities benefit. By modernizing our laws to address both traditional and technological price fixing, we can help restore robust competition that makes markets work better for California families.

We must combat the corporate greed that is driving increased costs for Californians. ESCAA is proud to co-sponsor Majority Leader Aguiar-Curry’s legislation, and we urge lawmakers to continue its progression through the legislative process until it reaches the governor’s desk.