Congress targets food price-fixing algorithms with aggressive new antitrust tool
H.R. 1788 — Fair Grocery Pricing Act · Filed by Maxwell Frost (D-FL) · 17 cosponsors · Introduced Mar 3, 2025 · Referred to committee
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What it does
This bill makes it illegal for food producers to use pricing software or data analytics services that help coordinate prices across competitors—a practice called 'consciously parallel pricing coordination.' It treats such coordination as automatic antitrust violations and allows the FTC, state attorneys general, and injured consumers to sue for triple damages. The bill aims to prevent food companies from using algorithms or data services to tacitly agree on prices without explicit contracts.
Why we flagged it
The bill's core function is to expand antitrust liability for food producers and coordinators who use pricing software or data services to align prices. It is not a price-control mechanism but an enforcement tool targeting algorithmic collusion.
What the text implies
- The bill defines 'consciously parallel pricing coordination' to include tacit coordination without explicit agreement, lowering the evidentiary bar for antitrust violations and potentially capturing legitimate competitive intelligence or independent pricing decisions that happen to align.
- By making use of pricing software a 'per se violation' (automatic illegal), the bill may chill legitimate use of data analytics for cost management, supply chain optimization, or dynamic pricing—tools that can also benefit consumers through efficiency.
The full analysis lists 5 implications of this text.
Who stands to gain
Antitrust litigation firms; Class action attorneys; Food producers not using pricing coordination software