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ARTICLE · 03 AUGUST 2026

Room Rate Roulette: The Third And Ninth Circuit Wrestle With Antitrust Liability For Pricing Algorithms

Crowell & Moring LLP
Crowell & Moring LLP
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Two federal appellate courts have reached opposite conclusions on price-fixing allegations involving AI-driven pricing software, creating a potential circuit split. The Third Circuit's reversal in Cornish-Adebiyi v. Caesars Entertainment contrasts sharply with the Ninth Circuit's dismissal in Gibson v. Cendyn Group, despite both cases involving the same algorithmic pricing technology used by competing hotels and casinos.

United StatesAntitrust/Competition Law
Eric Enson
Eric Enson
Jordan Ludwig
Jordan Ludwig
Jason C. Murray
Jason C. Murray
Nishtha Kochhar
Nishtha Kochhar

What You Need to Know

  • Key takeaway #1

    Audit your pricing software’s data architecture. A critical question is whether the algorithm uses competitors’ non-public data to generate your recommendations (and yours for theirs).

  • Key takeaway #2

    Review override and compliance policies. Override constraints, automatic price uploads, and high acceptance rates are all factors courts may evaluate in assessing the merits of a complaint.

  • Key takeaway #3

    Preserve documentation of independent pricing decisions. Evidence of independent pricing judgment is important in any litigation under Section 1 of the Sherman Act.

Two federal appellate courts have now looked at analogous allegations of price fixing using AI-driven pricing software and reached opposite conclusions—creating an arguable circuit split and providing additional guidance to companies using algorithmic pricing tools.

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