Statement to Senate Committee Substitute, Nos. 3612 and 3717 — Senate Commerce Committee

Summary

Statement to Senate Committee Substitute for Senate, Nos. 3612 and 3717, from the Senate Commerce Committee of the State of New Jersey, dated March 16, 2026, reporting the substitute favorably. The statement says the substitute establishes the "Fair Price Protection Act," making it a violation of the consumer fraud act to use personalized algorithmic pricing or surveillance pricing that varies the sale price of groceries and other foodstuffs based on personal data. It says the Attorney General may bring a civil action for actual monetary damages or $50,000, whichever is greater. It also states a consumer fraud act violation carries a penalty of not more than $10,000 for a first offense.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

 SENATE COMMITTEE SUBSTITUTE FOR
          SENATE, Nos. 3612 and 3717

 STATE OF NEW JERSEY
                     DATED: MARCH 16, 2026

    The Senate Commerce Committee reports favorably Senate
Committee Substitute for Senate Bill Nos. 3612 and 3717.
    This committee substitute establishes the “Fair Price Protection
Act.”
    This bill makes it an unlawful practice and a violation of the
consumer fraud act for a person to use personalized algorithmic
pricing, surveillance pricing, or any pricing strategy that determines or
varies the sale price of groceries and other foodstuffs based, in whole
or in part, on personal data.
    The bill does not prohibit any person from offering a different
price on groceries and other foodstuffs based upon:
    (1) reasonable costs associated with providing groceries and other
foodstuffs to different persons;
    (2) a bona fide discount for which eligibility conditions or criteria
are conspicuously disclosed and uniformly offered based upon those
conditions or criteria, and to which any member of a broadly defined
group, including, but not limited to a group of teachers or veterans, is
eligible; or
    (3) a bona fide discount offered as part of a loyalty program,
including loyalty programs that allow the accrual or exchange of
points, credits, or any similar nonmonetary system of value, or loyalty
programs that offer coupons to individual customers based on their
purchases.
    The bill also makes it an unlawful practice and a violation of the
consumer fraud act for any person to use an electronic shelving label
connected to any technology that employs personalized algorithmic
pricing, surveillance pricing, or any pricing strategy that determines or
varies the sale price of groceries and other foodstuffs based, in whole
or in part, on personal data.
    The Attorney General may bring a civil action to enjoin an act or
practice that is in violation of the provision of this bill, enforce
compliance, and obtain actual monetary damages incurred from the
violation or $50,000, whichever is greater, as well as any other
restitution, penalties, or relief the court may deem appropriate.
                                  2

    A violation of the consumer fraud act is punishable by a monetary
penalty of not more than $10,000 for a first offense and not more than
$20,000 for any subsequent offense. In addition, violations may result
in cease and desist orders issued by the Attorney General, the
assessment of punitive damages, and the awarding of treble damages
and costs to the injured party.


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