California SB 295 (California Preventing Algorithmic Collusion Act of 2025)

Enacts the California Preventing Algorithmic Collusion Act of 2025, prohibiting the distribution or use of pricing algorithms — including those derived from machine learning or AI techniques — by two or more competitors if the algorithms process competitor data to set prices or commercial terms in the same market. Establishes an affirmative defense for persons who exercised reasonable due diligence before using such algorithms, including obtaining written assurances that the algorithm does not process competitor data. Specifies that each authorized user, each recommendation, and each calendar month of use constitutes a separate violation. Exempts algorithms using competitor data collected more than one year prior, and credit scoring tools subject to the Fair Credit Reporting Act not used for direct coordination among competitors. Authorizes the Attorney General, district attorney, county counsel, or city attorney to seek restitution, punitive damages, civil penalties of up to $25,000 per violation, and injunctionary relief through civil actions. Specifies that contracts violating this chapter are void and that existing antitrust laws remain applicable.