Senator Wahab Advances Bold Legislation to Protect Consumers from Unfair Pricing Practices
Sacramento, CA — State Senator Dr. Aisha Wahab (D–Silicon Valley) has passed through the Senate two key consumer protection bills that tackle hidden, unfair, and algorithm-driven pricing tactics.
SB 259, The Fair Online Pricing Act, prohibits companies from charging consumers different prices online based on their smartphone or computer such as device type, browsing history, or location—putting a stop to digital price discrimination that harms everyday Californians.
SB 384, The Preventing Algorithmic Price Fixing Act, addresses rising prices by prohibiting companies from using software that allows competitors to secretly share private data on prices and stock; and ensures competition—not collusion—drives the market.
“Consumers deserve transparency and fairness, not manipulation,” said Senator Wahab. “These bills hold companies accountable and protect Californians from being unfairly targeted or overcharged.”
The majority of apps collect more data than is necessary for them to function properly, and up to 42% of all apps appear to collect data from a user’s other apps and frequented websites. Additionally, a January 2025 Consumer Reports survey including perspectives of loyalty program participants found that up to 76% opposed giving discounts based in part on demographics or online actions.
In the span of a year, no less than two high-profile anti-trust cases—United States and Plaintiff States v. Agri Stats and U.S. and Plaintiff States v. RealPage, Inc—in which the venue for collusion were digital tools. These digital handshakes create anti-competitive practices and unjustly increase the cost of goods and services for consumers.
SB 259 is author-driven legislation and supported by the California Labor Federation, Economic Security California Action, and TechEquity Action along with additional labor and consumer groups.
SB 384 is author-driven legislation and supported by the National Association of Social Workers, California School Employees Association, and numerous pro-consumer, legal aid, and advocacy organizations.
SB 259 will be heard in the Assembly Committee on Privacy and Consumer Protection on June 24, 2025.
SB 384 will be heard in the Assembly Judiciary Committee on July 1, 2025.
“Differential pricing that is not based on the actual cost of the good or service may instead rely on data points that could be used to infer income, need, or other personal attributes or current situation of the consumer. SB 259 offers a safeguard against potentially predatory and unfair price setting.”
—Sara Flocks, Legislative Director, California Federation of Labor Unions
“We believe [SB 259] sets an important precedent as California continues to lead in protecting digital rights and promoting economic justice.”
—Teri Olle, Director, Economic Security California Action
“SB 259 will help protect consumers from increasingly exploitative pricing strategies. We believe it is a necessary step to ensure a level playing field for consumers in California.”
— Vinhcent Le, Vice President of AI Policy, TechEquity Action
“SB 384 is a proactive and essential piece of legislation that addresses the emerging issue of algorithmic price-fixing, which has been shown to result in market manipulation and increased costs for consumers. This bill aims to prevent digital collusion, protect consumers, and foster a fairer and more transparent marketplace.”
— Kimberly Warmsley, Executive Director, National Association of Social Workers – California Chapter
“Consumers are entitled to the benefits of marketplace competition between various sellers, which is the primary lever for downward pressure on prices in pure market-based capitalism. When sellers collude secretively to keep prices artificially high, then consumers lose their strongest weapon which is the ability to walk to another seller should one particular seller raise their price too high.”
—Tracy Rosenberg, Member, and on behalf of, Oakland Privacy