The Software and Information Industry Association (SIIA) has joined a coalition of industry groups in opposing California Senate Bill 384 (Wahab), which is scheduled for a hearing on April 22. While the bill is intended to prevent anticompetitive price fixing, it does so by broadly prohibiting the use of pricing algorithms and other software that utilize nonpublic data—even when used lawfully. SB 384 regulates the technology itself rather than its misuse, threatening to chill innovation, limit price competition, and raise costs for consumers and small businesses alike.
As outlined in the coalition letter, pricing algorithms are widely used across industries—from retail and real estate to transportation and hospitality—to increase efficiency and respond dynamically to market conditions. The bill’s vague definitions, sweeping liability provisions, and overly broad scope would restrict these lawful practices and undermine California’s competitive edge. SIIA urges lawmakers to focus on targeting actual collusion rather than broadly banning the tools that enable competitive pricing in the digital age.
