Transparency in pricing algorithms

(a) In general Any person that has $5,000,000 or more in annual revenue that uses a pricing algorithm to recommend or set a price or commercial term shall clearly disclose, as applicable— (1) to a customer, before the customer purchases the relevant product or service, that the price or a commercial term, as applicable, is set or recommended by a pricing algorithm; and (2) to a current or prospective employee or independent contractor that the price or a commercial term for services rendered as an employee or independent contractor is set or recommended by a pricing algorithm. (b) Additional disclosures (1) Price discrimination If applicable, a disclosure under subsection (a) shall state that the pricing algorithm sets or recommends different prices or commercial terms for— (A) different customers seeking identical or nearly identical products or services; or (B) employees or independent contractors providing substantially similar services. (2) Third-party algorithm If applicable, a disclosure under subsection (a) shall— (A) state that the pricing algorithm was developed or distributed by a person other than the person making the disclosure; and (B) provide the identity of the person that developed or distributed the pricing algorithm. (c) Enforcement Failure to provide a disclosure under subsection (a), including the information required under subsection (b), shall constitute an unfair or deceptive act or practice under section 5 of the Federal Trade Commission Act (15 U.S.C. 45). (d) Civil action If the Commission has reason to believe that a person has violated subsection (a) or (b), the Commission, in its own name by any of its attorneys designated by it for such purpose, may bring a civil action in an appropriate district court of the United States to recover— (1) a civil penalty of not less than $5,000, adjusted for inflation on the basis of the Consumer Price Index, for each day during which the violation occurs or continues to occur; and (2) other appropriate relief, including an injunction or other equitable relief. (e) Relation to antitrust laws Nothing in this section shall impair or limit the applicability of the antitrust laws.