California Bill Targets Algorithmic Coercion—Why It Might Be Hurting Your Print and Toner Business.

California’s Senate has advanced a bill aimed at banning algorithmic coercion—a practice where online platforms pressure sellers into adopting prices recommended by algorithms. While this legislation primarily targets tech giants, it could have a big impact on businesses like yours in the toner and print industry.

What is Algorithmic Coercion?
Algorithmic coercion happens when digital marketplaces use algorithms to suggest prices, and sellers are indirectly forced to comply. If they don’t, they could face penalties like reduced visibility or sales. For your business, this could mean pricing pressure that reduces your margins and makes it harder to stay competitive.

How This Could Be Affecting Your Business
Price Pressure: If algorithms suggest lower prices, you might be forced to follow them, even if it cuts into your profits. Reduced Visibility: Platforms tend to prioritize products that follow algorithmic pricing suggestions, so non-compliant listings may get buried, hurting your sales. Less Control: You lose the ability to set prices that make sense for your business, instead being guided by algorithms that may not consider your costs or value.

Why It Matters
The bill could give businesses more control over pricing by stopping platforms from forcing unfair pricing strategies. It might lead to more transparent and fairer pricing practices, especially for small businesses like yours that rely on online marketplaces.

What Can You Do?
While the bill is still in the works, here are a few things you can do now:  Diversify sales channels: Don’t rely solely on big marketplaces. Stay flexible: Adjust prices carefully to maintain margins. Bundle products: Offering deals can differentiate you from competitors focused only on price. The California bill could offer relief from algorithmic pricing pressure, but until then, staying agile in how you price and sell is essential to keeping your business competitive.