Establishes "Fair Price Protection Act."

S3717

SENATE, No. 3717

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 5, 2026

Sponsored by:

Senator� JOSEPH A. LAGANA

District 38 (Bergen)

Senator� JOSEPH P. CRYAN

District 20 (Union)

Co-Sponsored by:

Senator McKnight

SYNOPSIS

���� Establishes �Fair Price Protection Act.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning surveillance-based price setting and
supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

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

���� 1.��� This act shall be known
and may be cited as the �Fair Price Protection Act.�

���� 2.��� As used in this act:

���� �Bona fide discount� means an
offered price that is lower than the genuine price at which a product or
service is widely offered to the public on a regular basis for a reasonably
substantial period of time and not for the purpose of establishing a fictitious
price to enable the subsequent offer of a reduction.

���� �Clear and conspicuous� means
in larger type than the surrounding text, or in contrasting type, font, or
color to the surrounding text of the same size, or set off from the surrounding
text of the same size by symbols or other marks, in a manner that clearly calls
attention to the language.

���� �Consumer� means a natural
person who is seeking to purchase, or is solicited to purchase, groceries and
other foodstuffs or services for personal, family, or household use.

���� Electronic shelving label�
means an electronic and wireless paper, also known as �E-paper,� display that
presents the product and pricing information for groceries and other
foodstuffs.

���� �Groceries and other
foodstuffs� or �product� means dairy products, meat and delicatessen products,
produce products, seafood products, carbonated beverages, coffee and other
beverages, snack foods, candy products, baked products, paper products,
household cleaning items, health and beauty products, frozen foods, pet foods
and supplies, and any other edible product not previously listed.�

���� �Retail food store� means any
retail establishment where groceries and other foodstuffs are regularly and
customarily sold in a bona fide manner for off-premises consumption.

���� �Service� means any activity
that is performed, in whole or in part, for the purpose of financial gain
including, but not limited to, sale, rental, leasing, and licensing for use.

���� �Surveillance-based price
setting� means offering or setting a customized price for a product or service for
a specific consumer or group of consumers based, in whole or in part, on
information collected through electronic surveillance technology, which
involves the use of technological methods, systems, or tools including, but not
limited to, sensors, cameras, device tracking, biometric monitoring, or other
forms of observation or data collection, capable of gathering information about
a consumer�s behavior, characteristics, location, or other personal attributes,
whether in physical or digital environments.

���� �Surveillance data� means data
that is related to the personal information, behavior, or biometrics of a
consumer and includes data gathered, purchased, or otherwise acquired.

���� �Third-party grocery delivery
platform� means a business entity, outside of the operation of a retail food
store, that operates a website, mobile application, or digital platform that
provides the service of facilitating, arranging, or enabling the purchase or
delivery of groceries and other foodstuffs from a retail food store to a
consumer.

���� 3.��� a.� Except as provided
in subsection b. of this section, it shall be considered an unlawful practice
and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a retail food store or
third-party grocery delivery platform to sell or offer for sale groceries and
other foodstuffs or a service and charge different prices to different
consumers for the same, or a substantially similar, product or service using,
informed by, or based on, in whole or in part, surveillance-based price setting
through the use of surveillance data collected from consumers.

���� b.��� (1) For purposes of this
act, the following shall not be considered surveillance-based price setting if
the conditions of paragraph (2) of this subsection are met:

���� (a)�� a difference in price
that is based solely on reasonable costs associated with providing the product
or service to different consumers;

���� (b)�� a bona fide discount
that is offered to any member of a broadly defined group including teachers,
active duty personnel, veterans, senior citizens, or students; or

���� (c)�� a bona fide discount
that is offered to any consumer who affirmatively and knowingly enrolls in a
loyalty program.

���� (2)�� A retail food store or
third-party grocery delivery platform shall not be in violation of subsection
a. of this section if any:

���� (a)�� basis for a difference
in reasonable costs associated with providing a product or service to different
consumers is disclosed to the consumer prior to purchase;

���� (b)�� eligibility conditions
or criteria for receiving or earning a bona fide discount are clearly and
conspicuously disclosed;

���� (c)�� bona fide discount is
offered uniformly to any consumer who meets the disclosed eligibility
conditions or criteria;

���� (d)�� surveillance data used
solely to offer or administer a bona fide discount is not used for any other
purpose, including profiling, targeted advertising, or individualized price
setting; and

���� (e)�� loyalty program that
allows a user to accrue and exchange points, credits, or any similar
nonmonetary system of value for a product or service does not charge a
different price for those points, credits, or similar nonmonetary system of
value to different consumers for the same or substantially similar product or
service.

���� 4.���
a.�
A retail food store shall not use an electronic shelving label
to display
the product and pricing information of groceries and other foodstuffs.�

���� b.��� A retail food store
shall use a method that allows for a non-digital presentation of price for
groceries and other foodstuffs.� If a single sign or tag does not provide the
unit price information of groceries and other foodstuffs for more than one
brand or size, then the following information for each product shall be
provided by a retail food store the:

���� (1) identity;

���� (2) brand name;

���� (3) quantity of the packaged product
if more than one package size per brand is displayed;

���� (4) total sale price; and

���� (5) price per appropriate
unit.

���� c.���� When a non-digital
presentation of price provides unit price information for groceries and other
foodstuffs, the non-digital presentation of price shall be centrally located as
close as practical to all products to which the non-digital presentation of
price refers, and the unit price information displayed thereon shall be
presented in a clear, distinct, and non-deceptive manner.

���� d.��� A violation of the
provisions of this section shall be an unlawful practice and a violation of
P.L.1960, c.39 (C.56:8-1 et seq.).

���� 5.��� If the Attorney General has
reason to believe that the interest of the residents of this State has been or
is threatened or adversely affected by an act or practice of a retail food
store or third-party grocery delivery platform in violation of subsection a. of
section 3 or section 4 of this act, or a regulation promulgated pursuant to
section 6 of this act, the Attorney General may bring a civil action on behalf
of the residents of this State in any court of competent jurisdiction to:

���� a.���� enjoin the act or
practice;

���� b.��� enforce compliance with
the provisions of this act;

���� c.���� obtain for each
violation, in addition to any other penalty provided by law, actual monetary
damages incurred from the violation or $50,000, whichever is greater; or

���� d.��� obtain, for each
violation, any other restitution, penalty, or relief the court may deem
appropriate.

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

���� 7.��� 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 establishes the
�Fair Price Protection Act.�

���� Under the bill, a retail food
store or third-party grocery delivery platform is prohibited from selling or
offering for sale groceries and other foodstuffs or a service and charging
different prices to different consumers for the same, or a substantially
similar, product or service using, informed by, or based on, in whole or in
part, surveillance-based price setting through the use of surveillance data
collected from consumers.

���� The bill defines �surveillance-based
price setting� as offering or setting a customized price for a product or
service for a specific consumer or group of consumers based on information
collected through electronic surveillance technology, including sensors,
cameras, device tracking, biometric monitoring, or other forms of observation
or data collection capable of gathering information about a consumer�s behavior,
characteristics, location, or other personal attributes.

���� Under the bill, it is not considered
surveillance-based price setting if the difference in price for a product or
service is: based solely on reasonable costs associated with providing the
product or service to different consumers; a bona fide discount offered to
broadly defined groups such as teachers, active duty personnel, veterans,
senior citizens, or students; or a bona fide discount offered to a consumer who
affirmatively and knowingly enrolls in a loyalty program.� These differences in
price are allowed provided that: eligibility conditions are clearly and
conspicuously disclosed; discounts are offered uniformly to consumers who meet
the criteria; surveillance data used solely to administer a bona fide discount
is not used for any other purpose; and loyalty programs do not charge different
prices for points or similar nonmonetary value for the same or substantially
similar product or service.

���� Additionally, under the bill,
a retail food store is prohibited from using electronic shelving labels to
display product and pricing information of groceries and other foodstuffs and
instead is required to use a method that allows for a non-digital presentation
of price.�

���� 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 bill�s
provisions is an unlawful practice under 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.