Assembly Commerce and Economic Development Committee Statement to Assembly, Nos. 4085 and 4523 (May 14, 2026)

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An Assembly Commerce and Economic Development Committee statement to the Assembly Committee Substitute for Assembly, Nos. 4085 and 4523, State of New Jersey, dated May 14, 2026, reporting it favorably with committee amendments. The substitute makes it an unlawful practice under the consumer fraud act to use surveillance pricing, or any strategy that sets the price of groceries and other foodstuffs based on personal data, with exceptions for cost-based prices changed no more than once in a 24-hour period, bona fide discounts and loyalty programs. It sets a one-year moratorium on new use of electronic shelf labels while the New Jersey Innovation Authority studies them. The Attorney General may seek actual 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 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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