Preventing Algorithmic Collusion Act of 2024

The Preventing Algorithmic Collusion Act of 2024 requires companies with $5 million or more in annual revenue to disclose to customers and employees when prices or terms are set by an algorithm, and to report detailed information about their pricing algorithms to the Federal Trade Commission (FTC) or Department of Justice upon request. It prohibits the use or distribution of pricing algorithms trained on nonpublic competitor data - which could enable anti-competitive price-fixing - and creates a legal presumption of collusion under antitrust law if multiple parties use such algorithms in the same market. Violations carry civil penalties of at least $10,000 per day or the total sales from the algorithm, with additional enforcement for failure to disclose. The bill also mandates an FTC study on pricing algorithms' impact on competition and consumers within two years.