California Legislators Debate Surveillance Pricing and Antitrust Bills

The California Legislature is facing intense pressure from corporate interests and advocacy groups as its two-year session approaches an August 31 adjournment. At the center of the conflict are two primary measures: Assembly Bill 2564 and Assembly Bill 1776.

Assembly Bill 2564, introduced by Assemblymember Christopher Ward, seeks to prohibit surveillance pricing, an algorithmic practice where retailers use personal data to tailor prices to individual consumers. Simultaneously, Assembly Bill 1776, authored by Assemblymember Cecilia Aguiar-Curry, proposes broadening the 1907 Cartwright Act to allow legal actions against corporations that achieve market dominance without collusion. This expansion follows a recommendation from the California Law Revision Commission.

While unions and consumer advocates support the measures to prevent monopolies and discrimination, the California Chamber of Commerce opposes both bills. The organization argues that the antitrust expansion penalizes successful businesses and increases operational costs. To address some concerns, AB 1776 was recently amended to remove the private right of action, which limits enforcement to the attorney general and local prosecutors.