BAKERSFIELD, CA – Senator Melissa Hurtado (D-Bakersfield) is taking a bold stand against corporations exploiting Californians through algorithmic price manipulation with the introduction of SB 295. This landmark legislation empowers the California Attorney General to oversee and report on pricing algorithms, ensuring transparency and accountability.

“Imagine a shady character like Bob whispering pricing secrets to businesses, urging them to inflate costs to maximize profits. Bob would be behind bars, so why should we tolerate algorithms doing the same thing in the shadows?” Senator Hurtado questioned.

SB 295 targets companies with over $5 million in annual revenue, mandating detailed reports on how their pricing algorithms operate, including data sources and reliance on competitor information. This legislation uncovers hidden collusion disguised as technological efficiency and stops corporate greed from crushing hardworking Californians.

Senator Hurtado didn’t mince words: “For years, Californians have been robbed by faceless corporations hiding behind technology. These algorithms are the culprits behind skyrocketing prices for basic needs like rent and groceries. It’s time we take the fight to them and say, “No more!”

Senator Hurtado added, “While innovation has brought us many benefits, let’s be clear—technology that serves only the elite few at the expense of everyone else is nothing more than legalized theft. SB XX flips the script, ensuring technology works for the people, not against them.

Over the past few years, Californians have endured a relentless assault on their wallets. Essential items like beef, pork, and poultry have surged over 30%. While supply chain disruptions and monopolistic practices have played a role, algorithms quietly manipulating prices have exacerbated the crisis. These systems aren’t just responding to market conditions; they’re colluding in plain sight, squeezing consumers with nowhere to turn.

“And let me remind you,” Hurtado added with a sharp tone of irony, “this is California—the state known for its innovation and progress. Is this really the kind of ‘progress’ we want? One where families have to choose between paying their energy bill or feeding their kids?”

SB XX isn’t just a piece of legislation; it’s a battle cry against the unchecked greed of corporations exploiting Californians. These algorithms may operate in the shadows, but their devastating impact is felt in every household struggling to put food on the table or keep the lights on. This bill is about restoring justice and transparency, pulling back the curtain on those who have weaponized technology to prey on families and evade accountability for far too long.

“Let’s not pretend that algorithms are neutral tools. Senator Hurtado continued. These programs are written, implemented, and manipulated by people, people who prioritize profit over the welfare of communities. AI advances should be lifting people up, not locking them out of affordable living.”

Some might argue against such oversight, but Hurtado made it clear: “Only those with something to hide would oppose this legislation. We’re not asking for much just a little fairness and honesty in the market.”

The California Preventing Algorithmic Collusion Act of 2025 will require companies to submit annual reports, under penalty of perjury, detailing how their algorithms operate, what data they rely on, and how they impact competitors. It’s a simple but necessary step to protect Californians from exploitation.

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