Prohibits use and sale of algorithmic devices that set sale price of goods or services.

A4685

ASSEMBLY, No. 4685

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 16, 2026

Sponsored by:

Assemblyman� DAVID BAILEY, JR.

District 3 (Cumberland, Gloucester and Salem)

Assemblyman� STERLEY S. STANLEY

District 18 (Middlesex)

Co-Sponsored by:

Assemblyman Venezia

SYNOPSIS

���� Prohibits use and sale of algorithmic devices that
set sale price of goods or services.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning certain algorithmic devices and
supplementing and amending P.L.1970, c.73.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� a.� It
shall be unlawful for a business entity to use, sell, distribute, develop,
transfer, provide access to, or otherwise make available by any means,
including through a subscription or the sale of a service, an algorithmic
device that uses a consumer�s personal data to recommend or set the sale price
for goods or services.

���� b.��� In addition to the
penalties established pursuant to section 7 of P.L.1970, c.73 (C.56:9-7), the
Attorney General may file a civil action for a violation of subsection a. of
this section, for damages, injunctive relief, restitution or return of illegal
profits, civil penalties of up to $1,000 per violation, or some combination of
these penalties.� The court shall award reasonable attorney�s fees and costs to
the Attorney General if the Attorney General is the prevailing party in the
civil action.

���� c.���� The Director of the
Division of Consumer Affairs in the Department of Law and Public Safety shall
adopt rules and regulations pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the provisions of
this act.

���� 2.��� Section 2 of P.L.1970,
c.73 (C.56:9-2) is amended to read as follows:

���� a.� �As used in this act,
unless the context otherwise requires
,
�person� shall mean any natural
person or persons, or any corporation, partnership, company, trust or
association of persons.

���� b.��� �Trade or commerce�
shall include all economic activity involving or relating to any commodity or
service.

���� c.���� �Commodity� shall mean
any kind of real or personal property.

���� d.��� �Service� shall mean any
activity which is performed in whole or in part for the purpose of financial
gain
[
,
]
including
,

but not limited to
,
sale, rental, leasing or licensing for use.

����
e.���� �Algorithmic device�
means a device, such as a software program, that uses one or more algorithms to
perform calculations using a consumer�s personal data to recommend or set the
sale price for goods or services.

����
f.���� �Business entity�
means any natural or legal person, business corporation, professional services
corporation, limited liability company, partnership, limited partnership,
business trust, association, or any other legal commercial entity organized
under the laws of this State or any other state or foreign jurisdiction.�

����
g.��� �Consumer� means a
person who is a resident of this State acting only in an individual or
household context.� �Consumer� shall not include a person acting in a
commercial context.

����
h.��� �Personal data� means
any information that, regardless of how the information is collected, inferred,
or obtained, is linked or reasonably linkable to a specific consumer or consumer�s
computer, mobile telecommunications service device, or any other
Internet-connected device.

(cf:� P.L.1970, c.73, s.2)

���� 3.��� This act shall take
effect on the first day of the seventh month next following the date of
enactment, except that the Director of the Division of Consumer Affairs may
take any anticipatory administrative action in advance as shall be necessary
for the implementation of this act.

STATEMENT

���� This bill prohibits the use
and sale of algorithmic devices that set the sale price of goods or services.

���� Specifically, the provisions
of this bill prohibit business entities from using, selling, distributing,
developing, transferring, providing access to, or otherwise make available by
any means, including through a subscription or the sale of a service, an
algorithmic device that uses a consumer�s personal data to recommend or set the
sale price for goods or services.

���� The bill provides that the
Attorney General may file a civil action for a violation for damages,
injunctive relief, restitution or return of illegal profits, civil penalties of
up to $1,000 per violation, or some combination of these penalties.� A court is
required to award reasonable attorney�s fees and costs to the Attorney General
if the Attorney General is the prevailing party in the civil action.�