California Lawmakers Target Algorithmic Pricing Practices by Cigna Corp. and Other Businesses

Published on 4.13.25

  The increasing presence of artificial intelligence (AI) in various industries has raised concerns over its potential misuse and impact on consumers. In the context of antitrust law, California lawmakers are pushing to regulate algorithmic pricing practices, with a bill aimed at prohibiting businesses from using nonpublic data to train their pricing algorithms. This move is part of a broader effort to curb unfair business practices and protect consumers. A recent case highlighted the legal risks associated with AI-powered claims denials by private health insurers, where companies like Cigna Corp. allegedly used automation tools to improperly deny benefits to patients. Experts emphasize the need for businesses to prioritize transparency and accountability when handling consumer data, citing the General Data Protection Regulation (GDPR) in the EU as a precedent for regulatory changes. The GDPR has set a standard for other countries to follow suit, underscoring the importance of responsible AI practices in industries that rely on sensitive information, such as finance and law.

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