,,ii #aah? ,,congress #b;d ,session ,s4 #cfhf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,janu>y #cj1 #bjbd,ms4 ,klobu*> 7= h]self1 ,mr4 ,wyd51 ,mr4 ,durb91 ,mr4 ,blum5?al1 ,ms4 ,hirono1 & ,mr4 ,wel*7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ! ,judici>y ,a ,,bill ,to prev5t anticompetitive conduct ?r\gh ! use ( pric+ algori?ms by prohibit+ ! use ( pric+ algori?ms t c facilitate collusion ?r\gh ! use ( nonpublic competitor data1 creat+ an antitru/ law en=cem5t audit tool1 increas+ transp>5cy1 & en=c+ violations ?r\gh ! ,%]man ,act & ,f$]al ,trade ,commission ,act1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,prev5t+ ,algori?mic ,collusion ,act ( #bjbd4 #b4 ,def9itions ,9 ?is ,act3 7#a7 ,antitru/ laws ,! t]m antitru/ laws-- 7,a7 has ! mean+ giv5 t t]m 9 subsection 7a7 ( ! fir/ section ( ! ,clayton ,act 7#ae ,u4,s4,c4 #ab72 & 7,b7 includes section #e ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de74 7#b7 ,comm]cial t]ms ,! t]m comm]cial t]ms means-- 7,a7 level ( s]vice2 7,b7 availability2 7,c7 output1 includ+ quantities ( products produc$ or di/ribut$ or ! am\nt or level ( s]vice provid$2 or 7,d7 rebates or disc\nts made available4 7#c7 ,commission ,! t]m ,commission means ! ,f$]al ,trade ,commission4 7#d7 ,di/ribute2 di/ribution2 di/ribut+ ,! t]ms di/ribute1 di/ribution1 & di/ribut+ include sell+1 lic5s+1 provid+ access to1 or o!rwise mak+ available by any means1 includ+ ?r\gh a subscription or ! sale ( a s]vice4 7#e7 ,nonpublic competitor data ,! t]m nonpublic competitor data-- 7,a7 means nonpublic data t is d]iv$ f or o!rwise provid$ by ano!r p]son t competes 9 ! same m>ket z a p]son1 or a relat$ m>ket2 & 7,b7 does n include in=mation di/ribut$1 report$1 or o!rwise communicat$ 9 a way t does n reveal any und]ly+ data f a competitor1 su* z n>rative indu/ry reports1 news reports1 bus9ess comm5t>ies1 or g5]aliz$ indu/ry survey results4 7#f7 ,nonpublic data ,! t]m nonpublic data means in=mation t is n widely available or easily accessible to ! public1 includ+ in=mation ab\t price1 comm]cial t]ms1 & relat$ products or s]vices1 reg>dless ( :e!r ! data is attributable to a specific competitor or anonymiz$4 7#g7 ,p]son ,! t]m p]son has ! mean+ giv5 t t]m 9 subsection 7a7 ( ! fir/ section ( ! ,clayton ,act 7#ae ,u4,s4,c4 #ab74 7#h7 ,price ,! t]m price means ! am\nt ( money or o!r ?+ ( value1 :e!r tangible or n1 expect$1 requir$1 or giv5 9 paym5t = any product or s]vice1 includ+ comp5sation paid to an employee or indep5d5t contractor = s]vices provid$4 7#i7 ,pric+ algori?m ,! t]m pric+ algori?m means any computational process1 includ+ a computational process d]iv$ f ma*9e le>n+ or o!r artificial intellig5ce te*niques1 t processes data to recomm5d or set a price or comm]cial t]m t is 9 or affect+ int]/ate or =eign comm]ce4 #c4 ,competition law en=cem5t audit 7a7 ,9 g5]al ,a p]son us+ or di/ribut+ a pric+ algori?m1 ^u a writt5 reque/ by ! ,attorney ,g5]al or ! ,commission1 %all1 n lat] ?an #cj days aft] ! date ( ! writt5 reque/1 or any lat] date approv$ by ! ,attorney ,g5]al or ! ,commission1 respectively1 provide to ! ,attorney ,g5]al or ! ,commission1 respectively1 a writt5 report on ea* pric+ algori?m id5tifi$ 9 ! reque/4 7b7 ,report cont5ts ,ea* report "u subsection 7a7 %all include-- 7#a7 in=mation on :e!r ! p]son is responsible = ! developm5t or di/ribution ( ! pric+ algori?m1 or :e!r a ?ird p>ty is responsible = ! developm5t or di/ribution ( ! pric+ algori?m1 includ+ ! id5tity & contact in=mation ( any o!r p]son responsible = ! developm5t or di/ribution ( ! pric+ algori?m2 7#b7 in=mation on :e!r ! pric+ algori?m autonom\sly sets prices or comm]cial t]ms & :e!r !re is human review ( any recomm5dation or decision ( ! pric+ algori?m2 7#c7 an explanation ( ! rules or processes t ! pric+ algori?m uses to set or recomm5d prices or comm]cial t]ms2 7#d7 a description ( all data ! pric+ algori?m uses to set or recomm5d prices or comm]cial t]ms1 includ+ data us$ to tra9 ! algori?m2 7#e7 all s\rces & collection processes1 includ+ ! frequ5cy ( collection1 ( any data t ! pric+ algori?m uses to set or recomm5d prices or comm]cial t]ms2 7#f7 :e!r ! pric+ algori?m engages 9 price discrim9ation by sett+ or recomm5d+ diff]5t prices or comm]cial t]ms =-- 7,a7 diff]5t cu/om]s seek+ id5tical or ne>ly id5tical products or s]vices1 & if s1 ! factors us$ 9 diff]5tiat+ among su* cu/om]s2 or 7,b7 diff]5t employees or indep5d5t contractors provid+ sub/antially simil> s]vices1 & if s1 ! factors us$ 9 diff]5tiat+ among su* employees or indep5d5t contractors2 & 7#g7 any *anges made to ! pric+ algori?m betwe5 ! date ( receipt ( ! reque/ "u subsection 7a7 & ! date ( c]tification "u subsection 7c74 7c7 ,c]tification ( report ,! ,*ief ,executive ,(fic]1 ,*ief ,economi/1 ,*ief ,te*nology ,(fic]1 or a corporate (fic] ( simil> au?ority ( a p]son %all c]tify1 "u p5alty ( p]jury1 ! accuracy ( a report "u subsection 7a7 submitt$ by ! p]son4 7d7 ,confid5tiality ,all in=mation submitt$ 9 a report "u subsection 7a7 %all be treat$ z confid5tial & %all be consid]$ to be privileg$ & confid5tial trade secrets & comm]cial or f9ancial in=mation exempt "u subsection 7b77#d7 ( section #eeb ( title #e1 ,unit$ ,/ates ,code1 f be+ made available to ! public "u subsection 7a7 ( t section4 7e7 ,in=mation %>+ 7#a7 ,9 g5]al ,a report "u subsection 7a7 may be %>$-- 7,a7 betwe5 ! ,dep>tm5t ( ,ju/ice & ! ,commission2 & 7,b7 ) ! ,national ,in/itute ( ,/&>ds & ,te*nology = te*nical assi/ance 9 und]/&+ ! report4 7#b7 ,limitation ,! ,national ,in/itute ( ,/&>ds & ,te*nology %all n disclose ! cont5ts ( a report %>$ "u p>agraph 7#a7 or ! analysis ( ! report by ! ,national ,in/itute ( ,/&>ds & ,te*nology to any p]son1 except ! ,dep>tm5t ( ,ju/ice or ,commission1 :i*ev] s\ght ! te*nical assi/ance4 7f7 ,rules ( con/ruction ,no?+ 9 ?is section %all-- 7#a7 limit ! ability ( ! ,commission or ! ,attorney ,g5]al to issue a civil inve/igative dem&1 to issue a subpo5a1 to seek discov]y 9 ! c\rse ( litigation1 or o!rwise obta9 in=mation ?r\gh o!r means available to ! ,commission or ! ,attorney ,g5]al2 or 7#b7 re/rict ! use ( in=mation submitt$ 9 a report "u subsection 7a7 9 ! c\rse ( a =mal inve/igation1 en=cem5t action1 litigation1 trial1 or o!r proce$+1 9 accordance ) ! confid5tiality proc$ures applicable to su* proce$+4 #d4 ,prev5t+ collusive activity 9 pric+ algori?ms 7a7 ,9 g5]al ,x %all be unlawful = a p]son to use or di/ribute any pric+ algori?m t uses1 incorporates1 or 0 tra9$ ) nonpublic competitor data4 7b7 ,civil action ,if ! ,commission or ! ,attorney ,g5]al has reason to believe t a p]son has violat$ subsection 7a71 ! ,commission1 9 its own "n by any ( its attorneys designat$ by x = su* purpose1 or ! ,attorney ,g5]al may br+ a civil action aga9/ ! p]son 9 an appropriate di/rict c\rt ( ! ,unit$ ,/ates to seek to recov]-- 7#a7 a civil p5alty (-- 7,a7 n less ?an #aj1jjj1 adju/$ = inflation on ! basis ( ! ,consum] ,price ,index1 = ea* day dur+ :i* ! violation occurs or cont9ues to occur2 or 7,b7 ! sum ( ! price ( ea* product or s]vice sold us+ ! pric+ algori?m 9 violation ( subsection 7a72 & 7#b7 o!r appropriate relief1 includ+ an injunction or o!r equitable relief4 7c7 ,effective ,date ,subsection 7a7 %all take effect on ! date t is #ij days aft] ! date ( enactm5t ( ?is ,act4 #e4 ,algori?mic price fix+ 7a7 ,presumption ( agreem5t ,) respect to ! use ( a pric+ algori?m t w\ld violate section #d ( ?is ,act1 !re %all be a presumption = purposes ( section #a ( ! ,%]man ,act 7#ae ,u4,s4,c4 #a7 t ! def5dant ent]$ into an agreem5t1 contract1 comb9ation1 or conspiracy 9 re/ra9t ( trade & = purposes ( section #e7;a7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a77 t ! def5dant has engag$ 9 an unfair me?od ( competition if ! pla9tiff e/abli%es t-- 7#a7 ! def5dant di/ribut$ ! pric+ algori?m to #b or m p]sons-- 7,a7 ) ! int5t t ! pric+ algori?m be us$ to set or recomm5d a price or comm]cial t]m ( a product or s]vice 9 ! same m>ket or a relat$ m>ket2 or 7,b7 & #b or m p]sons us$ ! pric+ algori?m to set or recomm5d a price or comm]cial t]m ( a product or s]vice 9 ! same m>ket or a relat$ m>ket2 or 7#b7 7,a7 ! def5dant us$ ! pric+ algori?m to set or recomm5d a price or comm]cial t]m ( a product or s]vice2 & 7,b7 ! pric+ algori?m 0 us$ by ano!r p]son to set or recomm5d a price or comm]cial t]m ( a product or s]vice 9 ! same m>ket or a relat$ m>ket4 7b7 ,rebuttal ,! presumption "u subsection 7a7 %all n apply to a def5dant if ! def5dant did n develop or di/ribute ! pric+ algori?m & ! def5dant demon/rates by cle> & conv9c+ evid5ce t ! def5dant did n h actual k or c\ld n h reasonably kn[n t ! pric+ algori?m us$ nonpublic competitor data4 7c7 ,jo9t & sev]al liability ,9 a civil case 9 :i* ! presumption "u subsection 7a7 is applicable1 any p]sons t di/ribut$ ! pric+ algori?m & knew1 or c\ld reasonably h kn[n1 t ! pric+ algori?m w\ld use1 incorporate1 or be tra9$ ) nonpublic competitor data %all be jo9tly & sev]ally liable = any violation ( section #a ( ! ,%]man ,act 7#ae ,u4,s4,c4 #a7 or section #e7;a7 ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de7;a774 7d7 ,relation to antitru/ laws ,no?+ 9 ?is section %all impair or limit ! applicability ( ! antitru/ laws4 7e7 ,effective date ,subsection 7a7 %all take effect on ! date t is #ij days aft] ! date ( enactm5t ( ?is ,act4 #f4 ,transp>5cy 9 pric+ algori?ms 7a7 ,9 g5]al ,any p]son t has #e1jjj1jjj or m 9 annual rev5ue t uses a pric+ algori?m to recomm5d or set a price or comm]cial t]m %all cle>ly disclose1 z applicable-- 7#a7 to a cu/om]1 be=e ! cu/om] pur*ases ! relevant product or s]vice1 t ! price or a comm]cial t]m1 z applicable1 is set or recomm5d$ by a pric+ algori?m2 & 7#b7 to a curr5t or prospective employee or indep5d5t contractor t ! price or a comm]cial t]m = s]vices r5d]$ z an employee or indep5d5t contractor is set or recomm5d$ by a pric+ algori?m4 7b7 ,additional disclosures 7#a7 ,price discrim9ation ,if applicable1 a disclosure "u subsection 7a7 %all /ate t ! pric+ algori?m sets or recomm5ds diff]5t prices or comm]cial t]ms =-- 7,a7 diff]5t cu/om]s seek+ id5tical or ne>ly id5tical products or s]vices2 or 7,b7 employees or indep5d5t contractors provid+ sub/antially simil> s]vices4 7#b7 ,?ird-p>ty algori?m ,if applicable1 a disclosure "u subsection 7a7 %all-- 7,a7 /ate t ! pric+ algori?m 0 develop$ or di/ribut$ by a p]son o!r ?an ! p]son mak+ ! disclosure2 & 7,b7 provide ! id5tity ( ! p]son t develop$ or di/ribut$ ! pric+ algori?m4 7c7 ,en=cem5t ,failure to provide a disclosure "u subsection 7a71 includ+ ! in=mation requir$ "u subsection 7b71 %all con/itute an unfair or deceptive act or practice "u section #e ( ! ,f$]al ,trade ,commission ,act 7#ae ,u4,s4,c4 #de74 7d7 ,civil action ,if ! ,commission has reason to believe t a p]son has violat$ subsection 7a7 or 7b71 ! ,commission1 9 its own "n by any ( its attorneys designat$ by x = su* purpose1 may br+ a civil action 9 an appropriate di/rict c\rt ( ! ,unit$ ,/ates to recov]-- 7#a7 a civil p5alty ( n less ?an #e1jjj1 adju/$ = inflation on ! basis ( ! ,consum] ,price ,index1 = ea* day dur+ :i* ! violation occurs or cont9ues to occur2 & 7#b7 o!r appropriate relief1 includ+ an injunction or o!r equitable relief4 7e7 ,relation to antitru/ laws ,no?+ 9 ?is section %all impair or limit ! applicability ( ! antitru/ laws4 #g4 ,,ftc /udy ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,commission %all publi% ! results ( a /udy ( ! use ( pric+ algori?ms1 includ+ in=mation on-- 7#a7 ! preval5ce ( pric+ algori?ms2 7#b7 ! frequ5cy ( ! use ( pric+ algori?ms to engage 9 price or wage discrim9ation2 7#c7 ! pot5tial = p]sons to use pric+ algori?ms to engage 9 behavior t increases prices1 l[]s wages1 r$uces output1 l[]s quality1 det]s innovation1 or o!rwise h>ms ! competitive process outside ( ! price fix+ context2 7#d7 ! pot5tial b5efits or effici5cies ( pric+ algori?ms2 7#e7 any indu/ries1 sectors1 or m>kets 9 :i* pric+ algori?ms may w>rant additional ov]sight or regulation to protect competition & consum]s2 & 7#f7 recomm5dations = additional legislation1 regulation1 or rulemak+ relat+ to competition & consum] protection issues aris+ f ! use ( pric+ algori?ms4