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A4085 A4523 3R ACS FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
[Third Reprint]
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, Nos. 4085 and 4523
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 2, 2026
SUMMARY
Synopsis:
Establishes �Fair Price Protection Act.�
Type of Impact:
Annual State expenditure and revenue increases.
Agencies Affected:
Department of Law and Public Safety; Department of the
Treasury.
Office of
Legislative Services Estimate
Fiscal Impact
Annual
State Expenditure Increase
Indeterminate
State Revenue Increase
Indeterminate
�
The Office of Legislative Services (OLS) anticipates a one-time indeterminate
State expenditure increase for the New Jersey Innovation Authority in the
Department of the Treasury to conduct a study on the use of electronic shelf
labels, in consultation with the Division of Consumer Affairs in the Department
of Law and Public Safety.
�
The OLS finds that annual Department of Law and Public Safety expenditures
would increase for investigations, civil enforcement actions, and potential
litigation undertaken by the Office of the Attorney General.� The magnitude of
these costs, as well as any associated court costs, is indeterminate and would
depend on the extent to which there are violations of the bill�s provisions.
�
The OLS concludes there may be an indeterminate annual State
revenue increase from monetary penalties and damages collected from violators
of the bill�s provisions.
BILL DESCRIPTION
����� This bill 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 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 the Department of the Treasury, in
consultation with the Division of Consumer Affairs in the Department of Law and
Public Safety, is required to 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 report, together
with any recommendations for legislative or administrative action, to the
Governor and to the Legislature. Upon the expiration of the moratorium, the new
use of electronic shelf labels is permitted, provided its use is in compliance
with current law or promulgated regulations, 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, 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.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS concludes the bill would result in a one-time indeterminate
State expenditure increase for the New Jersey Innovation Authority to conduct a
study on the use of electronic shelf labels, increased annual State costs for
the Department of Law and Public Safety to enforce the bill�s provisions, and
indeterminate annual State revenue increases from monetary penalties and
damages collected from violators of the bill�s provisions.
�����
State Expenditure Increase
:
� The
New Jersey Innovation Authority would incur a one-time expenditure increase to
conduct the study, analyze the results, and provide a report no later than six
months before the end of the one-year moratorium on the new use of electronic
shelf labels.� The New Jersey Innovation Authority was established pursuant to
P.L.2025, c.190 and partners with State agencies to design and deploy more
effective and efficient government services through the use of technology,
design, data, policy, marketing, and communications. The FY2027 Governor�s
Budget recommends increasing the appropriation for the New Jersey Innovation
Authority by $13.3 million, from $10.2 million in FY2026 to $23.5 million in FY2027.
����� The OLS finds that annual Department of Law and Public
Safety expenditures would increase for investigations, civil enforcement
actions, and potential litigation undertaken by the Office of the Attorney
General.� The magnitude of these costs, as well as any associated court costs,
is indeterminate and would depend on the extent to which there are violations
of the bill�s provisions.
�����
State Revenue Increase
:
� A
violation of the bill�s prohibition on the use of surveillance pricing is an
unlawful practice and violation of the Consumer Fraud Act, 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. The
bill also provides that for any violation the Attorney General may bring a
civil action to enjoin the act or practice; enforce compliance with the bill�s
provisions; obtain actual monetary damages incurred from the violation; or
obtain any other restitution, penalty, or relief a court of competent
jurisdiction deems appropriate.
����� The OLS, however, has no information on which to base
an estimate of the number and magnitude of future penalty assessments and
payments and thus cannot project the amount the State will collect.
Section:
Law and Public Safety
Analyst:
Kristin Brunner Santos
Lead Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).