SB79
Regulate the use of pricing algorithms
Current Status: In Senate Committee (Financial Institutions, Insurance and Technology)
Summary
SB79 aims to regulate the use of pricing algorithms by requiring disclosures from businesses that use such algorithms to set prices or terms, prohibits the use of nonpublic competitor data in developing these algorithms, and establishes legal presumption for antitrust violations in related fields.
Rationale
The regulation of pricing algorithms aligns with principles of transparency and fairness in commerce, resonating with LP ideals, but may also raise concerns among LPO members who favor limited regulation on business practices.
Risks and Concerns
- Could impose additional compliance costs on businesses, particularly small businesses.
- Potential for increased legal disputes related to antitrust violations.
- May restrict the innovation in pricing strategies by restricting data usage.