AI Frontier Institute

Regulate the use of pricing algorithms

View primary source →

Ohio S.B. No. 79 (136th General Assembly) was introduced on 2025-02-04 and referred to the Financial Institutions, Insurance and Technology committee. It has not been enacted. If enacted, it would regulate pricing algorithms under Ohio's antitrust law (Revised Code Chapter 1331). New section 1331.05(B) would bar any person from using or distributing a pricing algorithm that uses, incorporates, or is trained with nonpublic competitor data. Section 1331.01 would gain definitions, including "pricing algorithm," "nonpublic data," "nonpublic competitor data," "commercial terms," and "public office." Section 1331.04 would make a violation of 1331.05 a conspiracy against trade. Under 1331.05(C), a court in a civil or criminal action under sections 1331.01 to 1331.14 would presume an agreement or conspiracy against trade in two situations. In the first, the defendant distributed the algorithm to two or more persons, and either intended it to set or recommend prices in the same or a related market or two or more persons actually used it that way. In the second, the defendant used the algorithm and another person also used it in the same or a related market. Under 1331.05(D), the presumption does not apply to a defendant who did not develop or distribute the algorithm and shows by clear and convincing evidence that they had no actual knowledge and could not reasonably have known it used nonpublic competitor data. Under 1331.05(E), in civil cases where the presumption applies, distributors who knew or could reasonably have known of the nonpublic competitor data are jointly and severally liable. Section 1331.16 would extend the attorney general's investigative demand powers to information on how a pricing algorithm was developed or distributed, who is responsible for it, and how it works. New section 1331.50 would require businesses with $5 million or more in gross receipts that use a pricing algorithm to recommend or set a price or commercial term to disclose that fact. Customers would be told before purchase. Prospective and current employees and independent contractors would be told about pay set or recommended by an algorithm. The disclosure must also state three things: whether the algorithm sets different prices or terms for similar customers or workers, whether someone else developed or distributed it, and who that person is. A violation of 1331.50 would be an unfair or deceptive act under section 1345.02.

← Back to the tracker