Preventing Algorithmic Collusion Act of 2025

This legislation seeks to prevent anticompetitive conduct, particularly algorithmic collusion and price fixing, by regulating the use of pricing algorithms. A core provision prohibits the use or distribution of any pricing algorithm that incorporates or was trained with nonpublic competitor data . To enhance oversight, the bill creates an antitrust law enforcement audit tool, requiring companies to provide detailed reports on their pricing algorithms to the Attorney General or Federal Trade Commission upon request. These reports must include information on the algorithm's development, its autonomous capabilities, the rules it uses, its data sources, and whether it engages in price discrimination. Violations of the prohibition on using nonpublic competitor data can result in substantial civil penalties and establish a presumption of agreement under the Sherman Act . Furthermore, the bill mandates increased transparency, requiring companies with significant revenue to disclose to customers and employees when pricing algorithms are used to set prices or commercial terms, especially if price discrimination or a third-party algorithm is involved. The Federal Trade Commission is also tasked with conducting a comprehensive study on the prevalence and impact of pricing algorithms, including recommendations for future regulation.