Senate Commerce Committee Statement to Senate Committee Substitute, Nos. 3612 and 3717 (March 16, 2026)

Summary

The Senate Commerce Committee of the State of New Jersey, in a statement dated March 16, 2026, reports favorably the Senate Committee Substitute for Senate Bill Nos. 3612 and 3717, which establishes the "Fair Price Protection Act." The substitute makes it an unlawful practice and a violation of the consumer fraud act to use personalized algorithmic pricing, surveillance pricing or any pricing strategy that varies the sale price of groceries and other foodstuffs based on personal data. It does not bar price differences based on reasonable costs, bona fide discounts or loyalty programs. The Attorney General may sue for actual damages or $50,000, whichever is greater, and penalties are not more than $10,000 for a first offense and $20,000 for any subsequent 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.

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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