Is the Price Right? New York and California Escalate Legal Pressure on Pricing Algorithms
SUMMARY In recent weeks, there have been significant developments in the legal landscape of pricing and pricing algorithm laws in New York and California. In light of the quickly changing law on pricing, clients should be thinking about reviewing their pricing programs with antitrust counsel and taking other practical steps to decrease the likelihood that these programs might be found to violate state antitrust laws. Recently, California and New York both took significant legislative and legal actions involving pricing algorithms. The results are likely to extend far beyond both states, especially with an ongoing FTC inquiry into the same practices that is likely fueling, either directly or indirectly, many of these states’ actions. Clients who use or distribute pricing algorithms should pay careful attention to these changes: we recommend some potential strategies below as part of a broader effort by clients, including consulting antitrust and consumer protection counsel to advise on ...