Amended IN Assembly March 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 325Introduced by Assembly Member Aguiar-CurryJanuary 27, 2025An act to add Sections 16729 and 16756.1 to the Business and Professions Code, relating to business regulations. LEGISLATIVE COUNSEL'S DIGESTAB 325, as amended, Aguiar-Curry. Cartwright Act: violations.Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement.Existing law requires a complaint or cross-complaint to contain, among other things, a statement of facts constituting the cause of action, in ordinary and concise language.This bill would instead provide that in a complaint for any violation of the Cartwright Act, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible. The bill would provide that a complaint for any violation of the Cartwright Act is not required to allege facts tending to exclude the possibility of independent action.This bill would also prohibit a person from using or distributing any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data, as defined. The bill would provide that certain presumptions are established as applicable, including that the defendant entered into a contract in restraint of trade, as specified, if any of specified requirements are established, including that the defendant distributed the pricing algorithm to 2 or more persons with the intent that the pricing algorithm be used to set or recommend a price, as defined, or commercial term, as defined, of a product or service in the same market or a related market and 2 or more persons used the pricing make it unlawful, except as provided, for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if the person either distributes the pricing algorithm, as specified, or uses the pricing algorithm to set or recommend a price or commercial term of a product or service. service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 16729 is added to the Business and Professions Code, to read:16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.(2) This subdivision does not constitute a change in, but is declaratory of, existing law.(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600). (2)The defendant entered into a contract, agreement, or trust in violation of this chapter. (3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.(d)The presumptions described in(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.(e)In a civil case in which a presumption described in subdivision (b) is applicable, any(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.(f)(e) Nothing in this section shall impair or limit the applicability of antitrust laws.(g)(f) For purposes of this section, both of the following definitions apply:(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.(2) Commercial term means any of the following:(A) Level of service.(B) Availability.(C) Output, including quantities of products produced or distributed or the amount or level of service provided.(D) Rebates or discounts made available.(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.(6) Person has the same meaning as defined in Section 16702.(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state. SEC. 2. Section 16756.1 is added to the Business and Professions Code, to read:16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly March 10, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 325Introduced by Assembly Member Aguiar-CurryJanuary 27, 2025An act to add Sections 16729 and 16756.1 to the Business and Professions Code, relating to business regulations. LEGISLATIVE COUNSEL'S DIGESTAB 325, as amended, Aguiar-Curry. Cartwright Act: violations.Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement.Existing law requires a complaint or cross-complaint to contain, among other things, a statement of facts constituting the cause of action, in ordinary and concise language.This bill would instead provide that in a complaint for any violation of the Cartwright Act, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible. The bill would provide that a complaint for any violation of the Cartwright Act is not required to allege facts tending to exclude the possibility of independent action.This bill would also prohibit a person from using or distributing any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data, as defined. The bill would provide that certain presumptions are established as applicable, including that the defendant entered into a contract in restraint of trade, as specified, if any of specified requirements are established, including that the defendant distributed the pricing algorithm to 2 or more persons with the intent that the pricing algorithm be used to set or recommend a price, as defined, or commercial term, as defined, of a product or service in the same market or a related market and 2 or more persons used the pricing make it unlawful, except as provided, for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if the person either distributes the pricing algorithm, as specified, or uses the pricing algorithm to set or recommend a price or commercial term of a product or service. service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly March 10, 2025
Amended IN Assembly March 10, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 325
Introduced by Assembly Member Aguiar-CurryJanuary 27, 2025
Introduced by Assembly Member Aguiar-Curry
January 27, 2025
An act to add Sections 16729 and 16756.1 to the Business and Professions Code, relating to business regulations.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 325, as amended, Aguiar-Curry. Cartwright Act: violations.
Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement.Existing law requires a complaint or cross-complaint to contain, among other things, a statement of facts constituting the cause of action, in ordinary and concise language.This bill would instead provide that in a complaint for any violation of the Cartwright Act, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible. The bill would provide that a complaint for any violation of the Cartwright Act is not required to allege facts tending to exclude the possibility of independent action.This bill would also prohibit a person from using or distributing any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data, as defined. The bill would provide that certain presumptions are established as applicable, including that the defendant entered into a contract in restraint of trade, as specified, if any of specified requirements are established, including that the defendant distributed the pricing algorithm to 2 or more persons with the intent that the pricing algorithm be used to set or recommend a price, as defined, or commercial term, as defined, of a product or service in the same market or a related market and 2 or more persons used the pricing make it unlawful, except as provided, for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if the person either distributes the pricing algorithm, as specified, or uses the pricing algorithm to set or recommend a price or commercial term of a product or service. service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes the Attorney General as the head of the Department of Justice, with charge of all legal matters in which the state is interested, except as specified. Existing law imposes various requirements on the Attorney General related to consumer protection, including, among others, the supervision of charitable trusts and the enforcement of antitrust laws. Existing law, commonly known as the Cartwright Act, identifies certain acts that are unlawful restraints of trade and unlawful trusts and prescribes provisions for its enforcement.
Existing law requires a complaint or cross-complaint to contain, among other things, a statement of facts constituting the cause of action, in ordinary and concise language.
This bill would instead provide that in a complaint for any violation of the Cartwright Act, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible. The bill would provide that a complaint for any violation of the Cartwright Act is not required to allege facts tending to exclude the possibility of independent action.
This bill would also prohibit a person from using or distributing any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data, as defined. The bill would provide that certain presumptions are established as applicable, including that the defendant entered into a contract in restraint of trade, as specified, if any of specified requirements are established, including that the defendant distributed the pricing algorithm to 2 or more persons with the intent that the pricing algorithm be used to set or recommend a price, as defined, or commercial term, as defined, of a product or service in the same market or a related market and 2 or more persons used the pricing make it unlawful, except as provided, for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if the person either distributes the pricing algorithm, as specified, or uses the pricing algorithm to set or recommend a price or commercial term of a product or service. service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market. Because the bill would expand the scope of activities prohibited by the Cartwright Act, the violation of which is punishable as a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 16729 is added to the Business and Professions Code, to read:16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.(2) This subdivision does not constitute a change in, but is declaratory of, existing law.(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600). (2)The defendant entered into a contract, agreement, or trust in violation of this chapter. (3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.(d)The presumptions described in(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.(e)In a civil case in which a presumption described in subdivision (b) is applicable, any(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.(f)(e) Nothing in this section shall impair or limit the applicability of antitrust laws.(g)(f) For purposes of this section, both of the following definitions apply:(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.(2) Commercial term means any of the following:(A) Level of service.(B) Availability.(C) Output, including quantities of products produced or distributed or the amount or level of service provided.(D) Rebates or discounts made available.(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.(6) Person has the same meaning as defined in Section 16702.(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state. SEC. 2. Section 16756.1 is added to the Business and Professions Code, to read:16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 16729 is added to the Business and Professions Code, to read:16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.(2) This subdivision does not constitute a change in, but is declaratory of, existing law.(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600). (2)The defendant entered into a contract, agreement, or trust in violation of this chapter. (3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.(d)The presumptions described in(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.(e)In a civil case in which a presumption described in subdivision (b) is applicable, any(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.(f)(e) Nothing in this section shall impair or limit the applicability of antitrust laws.(g)(f) For purposes of this section, both of the following definitions apply:(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.(2) Commercial term means any of the following:(A) Level of service.(B) Availability.(C) Output, including quantities of products produced or distributed or the amount or level of service provided.(D) Rebates or discounts made available.(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.(6) Person has the same meaning as defined in Section 16702.(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state.
SECTION 1. Section 16729 is added to the Business and Professions Code, to read:
### SECTION 1.
16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.(2) This subdivision does not constitute a change in, but is declaratory of, existing law.(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600). (2)The defendant entered into a contract, agreement, or trust in violation of this chapter. (3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.(d)The presumptions described in(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.(e)In a civil case in which a presumption described in subdivision (b) is applicable, any(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.(f)(e) Nothing in this section shall impair or limit the applicability of antitrust laws.(g)(f) For purposes of this section, both of the following definitions apply:(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.(2) Commercial term means any of the following:(A) Level of service.(B) Availability.(C) Output, including quantities of products produced or distributed or the amount or level of service provided.(D) Rebates or discounts made available.(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.(6) Person has the same meaning as defined in Section 16702.(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state.
16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.(2) This subdivision does not constitute a change in, but is declaratory of, existing law.(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600). (2)The defendant entered into a contract, agreement, or trust in violation of this chapter. (3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.(d)The presumptions described in(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.(e)In a civil case in which a presumption described in subdivision (b) is applicable, any(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.(f)(e) Nothing in this section shall impair or limit the applicability of antitrust laws.(g)(f) For purposes of this section, both of the following definitions apply:(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.(2) Commercial term means any of the following:(A) Level of service.(B) Availability.(C) Output, including quantities of products produced or distributed or the amount or level of service provided.(D) Rebates or discounts made available.(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.(6) Person has the same meaning as defined in Section 16702.(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state.
16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.(2) This subdivision does not constitute a change in, but is declaratory of, existing law.(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600). (2)The defendant entered into a contract, agreement, or trust in violation of this chapter. (3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.(d)The presumptions described in(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.(e)In a civil case in which a presumption described in subdivision (b) is applicable, any(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.(f)(e) Nothing in this section shall impair or limit the applicability of antitrust laws.(g)(f) For purposes of this section, both of the following definitions apply:(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.(2) Commercial term means any of the following:(A) Level of service.(B) Availability.(C) Output, including quantities of products produced or distributed or the amount or level of service provided.(D) Rebates or discounts made available.(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.(6) Person has the same meaning as defined in Section 16702.(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state.
16729. (a) (1) A person shall not use or distribute any pricing algorithm that uses, incorporates, or was trained with nonpublic competitor data.
(2) This subdivision does not constitute a change in, but is declaratory of, existing law.
(b) If a court finds a violation of subdivision (a), there shall be, subject to the requirements of subdivisions (c) and (d), all Except as provided in subdivision (c), it shall be unlawful for a person to use or distribute any pricing algorithm that uses, incorporates, or was trained with data other than nonpublic competitor data if either of the following presumptions: is true:
(1)The defendant entered into a contract in restraint of trade in violation of Chapter 1 (commencing with Section 16600).
(2)The defendant entered into a contract, agreement, or trust in violation of this chapter.
(3)The defendant entered into a contract in violation of Chapter 4 (commencing with Section 17000).
(c)The applicable presumptions described in subdivision (b) shall apply only if either of the following is established:
(1) The defendant distributed person distributes the pricing algorithm, or a pricing algorithm trained on substantially similar data to that pricing algorithm, to two or more persons with the intent that the pricing algorithm be used to set or recommend a price or commercial term of a product or service in the same market or a related market and two or more persons used the pricing algorithm to set or recommend a price or commercial term of a product or service. market.
(2) The defendant used person uses the pricing algorithm algorithm, or a pricing algorithm trained on substantially similar data to that algorithm, to set or recommend a price or commercial term of a product or service and the pricing algorithm was used by another person to set or recommend a price or commercial term of a product or service in the same market or a related market.
(d)The presumptions described in
(c) A defendant is not guilty of violating subdivision (b) shall not apply to a defendant if the defendant did not develop or distribute the pricing algorithm and the defendant demonstrates by clear and convincing evidence that the defendant did not have actual knowledge or could not have reasonably known that the pricing algorithm used nonpublic competitor data and was used by two or more persons to set or recommend a price or commercial term of a product or service in the same market or a related market.
(e)In a civil case in which a presumption described in subdivision (b) is applicable, any
(d) Any person that distributed distributes the pricing algorithm and knew, knows, or could have reasonably known, that the pricing algorithm would use, incorporate, or be trained with nonpublic competitor data, or that the pricing algorithm would be used by two or more people to set or recommend a price or commercial term of a product or service in the same market or a related market, shall be jointly and severally liable for any violation of this chapter or Chapter 4 (commencing with 17000). section.
(f)
(e) Nothing in this section shall impair or limit the applicability of antitrust laws.
(g)
(f) For purposes of this section, both of the following definitions apply:
(1) Antitrust laws has the same meaning as defined in the Clayton Act (15 U.S.C. Sec. 12), and includes Section 45 of Title 15 of the United States Code, and this part, including provisions in this chapter, commonly known as the Cartwright Act.
(2) Commercial term means any of the following:
(A) Level of service.
(B) Availability.
(C) Output, including quantities of products produced or distributed or the amount or level of service provided.
(D) Rebates or discounts made available.
(3) Distribute, distribution, and distributing include selling, licensing, providing access to, or otherwise making available by any means, including through a subscription or the sale of a service.
(4) Nonpublic competitor data means nonpublic data data, including, but not limited to, aggregated data, that is based on, derived from, or otherwise provided by another person that competes in the same market as a person, or a related market. Nonpublic competitor data includes aggregated data but does not include information distributed, reported, or otherwise communicated in a way that does not reveal any underlying data from a competitor, such as narrative industry reports, news reports, business commentaries, or generalized industry survey results.
(5) Nonpublic data means information that is not widely available or easily accessible to the public, including information about prices, commercial terms, and related products or services, regardless of whether the data is attributable to a specific competitor or anonymized. Nonpublic data includes public-facing data made available under terms of service that prohibit the use of that data.
(6) Person has the same meaning as defined in Section 16702.
(7) Price means the amount of money or other thing of value, whether tangible or not, expected, required, or given in payment for any product or service, including compensation paid to an employee or independent contractor for services provided.
(8) Pricing algorithm means any computational process, including a computational process derived from machine learning or other artificial intelligence techniques, that processes data to recommend or set a price or commercial term within the jurisdiction of this state.
SEC. 2. Section 16756.1 is added to the Business and Professions Code, to read:16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.
SEC. 2. Section 16756.1 is added to the Business and Professions Code, to read:
### SEC. 2.
16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.
16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.
16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.
16756.1. Notwithstanding any other law, in a complaint for any violation of this chapter, it is sufficient to contain factual allegations demonstrating that the existence of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce is plausible, and the complaint shall not be required to allege facts tending to exclude the possibility of independent action.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 3.