AB 325 (Chapter 338, Statutes of 2025): Cartwright Act amendments on common pricing algorithms (Bus. & Prof. Code 16729)

Summary

California amended its antitrust statute, the Cartwright Act, to address pricing algorithms shared among competitors. New Business and Professions Code section 16729 makes it unlawful to use or distribute a common pricing algorithm as part of a contract, combination in the form of a trust, or conspiracy to restrain trade, and, separately, to use or distribute one while coercing another person to set or adopt a price or commercial term the algorithm recommends for the same or similar products or services in California. A common pricing algorithm is any methodology, including software or other technology, used by two or more persons that uses competitor data to recommend, align, stabilize, set or otherwise influence a price or commercial term. The act also lowers the pleading standard for every Cartwright Act conspiracy claim: a complaint need only allege facts making the agreement plausible and need not exclude independent action. A companion bill, SB 763, raised Cartwright Act penalties at the same time; it is not specific to algorithms and is not recorded separately.

Key dates

1. October 6, 2025Enacted
2. January 1, 2026Takes effect
3. October 16, 2026Checked against sources
4. October 21, 2026Checked against sources

Developments are added when the record is reviewed. Next review: October 16, 2027.

Evidence

Each passage is quoted from its source. The quoted passages are re-checked against the live pages every month.

1. 2025-10-06: Chaptered by Secretary of State – Chapter 338, Statutes of 2025.

   Supports: Enacted status and chapter number

   This bill would also make it unlawful for a person to use or distribute a common pricing algorithm as part of a contract, combination in the form of a trust, or conspiracy to restrain trade or commerce.

   Supports: Core prohibition (Legislative Counsel's digest)

   AB 325: Cartwright Act: violations (bill page, chaptered version) Digital Democracy (CalMatters) Reporting or analysis

2. Assembly Bill 325, a new law related to the use of “common pricing algorithms,” will be effective on January 1, 2026.

   Supports: Effective date

   “any methodology, including a computer, software, or other technology, used by two or more persons, that uses competitor data to recommend, align, stabilize, set, or otherwise influence a price or commercial term.”

   Supports: Definition of common pricing algorithm (16729(d)(3))

   It shall be unlawful for a person to use or distribute a common pricing algorithm if the person coerces another person to set or adopt a recommended price or commercial term recommended by the common pricing algorithm

   Supports: Coercion prohibition (16729(b))

   the complaint shall not be required to allege facts tending to exclude the possibility of independent action.

   Supports: Lowered pleading standard

   Re: Assembly Bill 325, effective January 1, 2026 (informational letter, 21 November 2025) California Energy Commission, Division of Petroleum Market Oversight Primary source

3. On October 6, 2025, Governor Gavin Newsom signed AB 325 , amending California's primary antitrust law, the Cartwright Act

   Supports: Signing date

   Algorithmic Antitrust: California's New Pricing Law Frankfurt Kurnit Klein & Selz Reporting or analysis

4. Criminal fines rise to more than $6 million for businesses and $1 million for individuals, and businesses and individuals may now be subject to civil fines of up to $1 million in cases brought by the Attorney General or a district attorney.

   Supports: Penalties as raised by SB 763

   The law does not affect a business that uses proprietary algorithms utilizing only the business's own data.

   Supports: Scope: single-firm algorithms on own data not covered

   California’s Antitrust Law Amendments Kick In, Targeting Algorithmic Pricing Cleary Gottlieb Reporting or analysis