Statement to Assembly Committee Substitute, Nos. 4085 and 4523 — Assembly Commerce Committee

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Statement to Assembly Committee Substitute for Assembly, Nos. 4085 and 4523, with committee amendments, from the Assembly Commerce and Economic Development Committee of the State of New Jersey, dated May 14, 2026. The statement says the committee substitute makes it a violation of the consumer fraud act to use surveillance pricing that varies the sale price of groceries and other foodstuffs based on personal data, and establishes a one-year moratorium on the new use of electronic shelf labels with a study by the New Jersey Innovation Authority. It says the Attorney General may seek actual monetary damages or $50,000, whichever is greater.

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ASSEMBLY COMMERCE AND ECONOMIC DEVELOPMENT
                COMMITTEE

                          STATEMENT TO

     ASSEMBLY COMMITTEE SUBSTITUTE FOR
             ASSEMBLY, Nos. 4085 and 4523
                         with committee amendments



       STATE OF NEW JERSEY
                             DATED: MAY 14, 2026

          The Assembly Commerce and Economic Development Committee
      reports favorably and with committee amendments Assembly Bill Nos.
      4085 and 4523 ACS.
          As amended, this committee substitute makes it an unlawful
      practice and a violation of the consumer fraud act for a person to use
      surveillance pricing or any other 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 consumers, provided that a price is not changed
      more than once in a 24-hour period;
          (2) a bona fide discount for which eligibility conditions or criteria
      are clearly and 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, under certain circumstances, 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 discounts, rebates, or
      coupons to individual consumers based on their purchases and loyalty
      programs that include pricing benefits offered by another person.
          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 surveillance pricing or any
      other 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 establishes a one-year moratorium on the new use of
      electronic shelf labels in this State. Before and during the moratorium,
      the New Jersey Innovation Authority, in consultation with the Division
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of Consumer Affairs, would conduct a study on the use of electronic
shelf labels. The study is to examine, at a minimum, the effects of
electronic shelf labels and the impact of electronic shelf labels on
surveillance pricing.
    Additionally, the New Jersey Innovation Authority is required by
the bill to submit, no later than six months before the expiration of the
moratorium, the study’s findings and conclusions in a final report,
together with any recommendations for legislative or administrative
action to the Governor and to the Legislature. Upon the expiration of
the moratorium, the use of electronic shelf labels is permitted,
provided its use is in compliance with current law or promulgated
regulation, unless the Legislature enacts a law to the contrary.
    The Attorney General may bring a civil action to enjoin an act or
practice that is in violation of the provisions of the 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.
    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.

COMMITTEE AMENDMENTS:
    The committee amendments:
    (1) clarify the definitions of “bona fide discount,” “electronic
shelving label,” “location,” “personal data,” and “surveillance
pricing”;
    (2) define “price”;
    (3) remove the definition of “personalized algorithmic pricing”;
    (4) clarify permitted circumstances for offering a different price
on groceries and other foodstuffs;
    (5) change the effective date of the bill from the seventh to the
13th month next following enactment; and
    (6) make other technical and clarifying changes.


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