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Bill

Bill

S 3612

Establishes "Fair Price Protection Act."*

2026-2027 Regular Session Introduced by Jim Beach and 9 co-sponsors

Prohibits pricing groceries by personal data or surveillance, banning personalized algorithmic and surveillance pricing and requiring clear, bona fide discounts.

Substituted by A4085/4523 (ACS/3R)
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Bill Summary · S 3612

Summary of Bill: Fair Price Protection Act (S 3612, 222nd NJ Legislature)

Purpose and intent

  • Establishes the “Fair Price Protection Act” to prohibit pricing practices for groceries and other foodstuffs that rely on personal data through personalized algorithmic pricing or surveillance pricing.
  • Aims to protect residents from price variation based on individual data, ensuring pricing is not dynamically driven by personal characteristics or behavior.

Key definitions (scope and terms)

  • Bona fide discount: A genuine lower price offered to a broad group, with eligibility criteria clearly disclosed and uniformly applied; not a sham to set up a later reduction.
  • Electronic shelving label: Internet-connected display showing product and pricing information.
  • Groceries and other foodstuffs: Broad list including dairy, meat, produce, seafood, beverages, snacks, baked goods, paper products, household cleaning items, health/beauty, frozen foods, pet foods, and other edible products.
  • Location: Consumer geolocation data used to infer identity or protected class; excludes data used to fulfill a purchase, calculate costs, or assess local market conditions.
  • Personal data: Information linked or reasonably linkable to an identified or identifiable person.
  • Personalized algorithmic pricing: Pricing determined or adjusted by an algorithm using personal data, resulting in price variation for individuals or groups.
  • Surveillance pricing: Pricing determined by algorithm/system using personal data, including methods like sensors, cameras, device tracking, biometric monitoring, etc., to gather information about a person’s behavior or attributes.

Prohibited practices and allowed exceptions

  • Unlawful practice: It is unlawful to use personalized algorithmic pricing, surveillance pricing, or any pricing strategy that bases the sale price on personal data.
  • Allowed alternatives (subsection b): 1) Different prices based on reasonable costs associated with serving different persons. 2) Bona fide discounts with conspicuously disclosed eligibility criteria applicable to a broadly defined group (e.g., teachers, veterans). 3) Bona fide discounts via loyalty programs (points, credits, coupons, etc.).
  • If personal data is used to offer a price difference under (2), that data cannot be used for other purposes.

Electronic shelving labels

  • It is unlawful to use electronic shelving labels with technology that employs personalized algorithmic pricing or surveillance pricing or bases prices on personal data.

Enforcement and remedies

  • Attorney General enforcement: The AG may file civil actions if there is a violation, seeking:
    • Court orders to enjoin the act/practice.
    • Compliance enforcement.
    • Monetary damages for each violation (actual damages or $50,000, whichever is greater).
    • Other restitution, penalties, or relief as appropriate.
  • Potential for other penalties or relief as determined by the court.

Administrative and regulatory provisions

  • The Director of the Division of Consumer Affairs may promulgate rules under the Administrative Procedure Act to implement the act.

Effective date and implementation

  • Generally takes effect on the first day of the seventh month after enactment.
  • The Director may begin anticipatory administrative action before enactment to implement provisions.

Practical impact and who is affected

  • Retailers and grocers: Businesses that price groceries and use electronic shelving or pricing algorithms would be subject to prohibition on personal-data–driven pricing and must ensure pricing strategies do not rely on personal data.
  • Consumers: Aims to protect consumers from price discrimination based on personal data, reducing opaque or targeted price fluctuations.
  • Market practices: Encourages transparency, with allowed bona fide discounts and loyalty programs, provided criteria are clear and uniformly applied.
  • Data practices: Limits use of personal data for pricing; requires clear separation of data use when discounts are applied.

Procedural notes

  • Schedule: Reported from Senate committee and moving through the normal legislative process (as of the latest actions: introduced February 19, 2026; substitute reported March 16, 2026; referred to Budget and Appropriations).
  • Sponsorship: Several co-sponsors, including Shirley Turner and others.

If you’d like, I can outline potential fiscal implications, compare with existing New Jersey price or consumer protection laws, or provide a side-by-side of the prohibited versus allowed pricing scenarios with concrete examples.

Compiled from official sources — confirm details with the bill’s official record.

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