Establishes "Fair Pricing and Transparency Act."

S3952

SENATE, No. 3952

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 16, 2026

Sponsored by:

Senator� BRIAN P. STACK

District 33 (Hudson)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Establishes �Fair Pricing and Transparency Act.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning certain algorithmic pricing
strategies, 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 Pricing and Transparency Act.�

���� 2.��� As used in this act:

���� �Algorithm� means a
computational process that uses a set of rules to define a sequence of
operations including, but not limited to, artificial intelligence systems and
facial recognition software.

���� �Behavior� means a consumer�s
observable, measurable, or inferred actions, habits, preferences, interests, or
vulnerabilities, including the consumer�s: political, personal, or professional
affiliations; web browsing history; Internet protocol addresses used; locations
frequented; purchase history; financial circumstances; or inferences associated
with a group, band, class, or tier of consumers in which the consumer belongs.

���� �Consumer� means a person who
is a resident of this State acting only in an individual or household context,
however identified, including by any unique identifier. �A consumer whose
location is in this State shall be presumed to be a New Jersey resident.

���� �Dynamic pricing� means modifying
the price of groceries and other foodstuffs based on real-time or predicted
demand, consumer behavior, consumer characteristics, or algorithmic
determination of willingness to pay, rather than changes in the person's actual
costs of providing the groceries and other foodstuffs.

���� �Electronic shelf label
system� means any hardware, software, or connected technology used to display
or update prices electronically, including electronic shelf labels, pricing
servers, wireless beacons, and consumer-facing applications, that have the capacity,
directly or indirectly, to collect, receive, infer, analyze, or use consumer
data for the purpose of modifying, personalizing, or varying the price of
groceries and other foodstuffs. An electronic shelf label system, regardless of
whether it is enabled, disabled, or actively utilized, shall be considered an
electronic shelf label system for the purposes of this act.

���� �Groceries and other
foodstuffs� 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.�

���� "Inferred data"
means data, assumptions, predictions, or classifications about a consumer that
are derived, in whole or in part, from personally identifiable information,
device identifiers, online activity, loyalty program participation, or other
behavioral information including, but not limited to, inferences about income,
education level, household composition, likelihood to purchase certain
products, race, ethnicity, age, disability status, or any other protected
characteristic.

���� "Personalized
pricing" means pricing that is determined or modified, in whole or in part,
through the use of an automated system, artificial intelligence, a machine
learning model, or an algorithm that relies on consumer data or inferred data
to determine the price a consumer or group of consumers will be charged.

���� �Personally identifiable
information� means information that identifies, relates to, describes, is
reasonably capable of being associated with, or could reasonably be linked,
directly or indirectly, with a particular consumer or household. �Personally
identifiable information shall include, but is not limited to, the following if
it identifies, relates to, describes, is reasonably capable of being associated
with, or could be reasonably linked, directly or indirectly, with a particular
consumer or household:

���� (1)�� identifiers such as a
real name, alias, postal address, unique personal identifier, online
identifier, Internet protocol address, email address, account name, social
security number, driver's license number, passport number, or other similar
identifiers;

���� (2)�� any information that
identifies, relates to, describes, or is capable of being associated with, a
particular consumer including, but not limited to, a consumer�s name,
signature, social security number, physical characteristics or description,
address, telephone number, passport number, driver's license or state
identification card number, insurance policy number, education, employment,
employment history, bank account number, credit or debit card number, or any
other financial, medical, or health insurance information;

���� (3)�� information that
identifies a characteristic that is legally protected from discrimination under
the laws of this State or under federal law including, but not limited to,
ethnicity, national origin, age, disability, predisposing genetic
characteristic, sex, sexual orientation, gender identity and expression,
pregnancy-related conditions, marital status, familial status, religion, and
reproductive health care;

���� (4)�� commercial information,
including records of personal property, products or services purchased,
obtained, or considered, or other purchasing or consuming histories or
tendencies;

���� (5)�� biometric information;

���� (6)�� Internet or other
electronic network activity information including, but not limited to, browsing
history, search history, and information regarding a consumer's interaction
with an Internet website application, or advertisement;

���� (7)�� geolocation data;

���� (8)�� professional or
employment-related information;

���� (9)�� information that is not
publicly available pertaining to a person�s education; and

���� (10) inferences drawn from any
of the information identified in this paragraph to create a profile about a
consumer reflecting the consumer's preferences, characteristics, psychological
trends, predispositions, behavior, attitudes, intelligence, abilities, and
aptitudes.

���� �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.� A retail
food store shall not include any retail establishment that has more than 50
employees.

���� "Surveillance-based price
discrimination" means the practice of setting, altering, or manipulating
the price of groceries and other foodstuffs offered to a consumer based in
whole or in part on monitoring, tracking, or automated analysis of the
consumer's behavior, location, demographic characteristics, biometric data, or
other personally identifiable information, rather than on the actual cost of
providing the groceries and other foodstuffs.

���� 3.��� a.�
A retail food store shall clearly and conspicuously post the sale price of
groceries and other foodstuffs.

���� b.��� A retail food store
shall not:

���� (1)�� use surveillance-based
price discrimination to modify the sale price of groceries and other foodstuffs
sold to consumers;

���� (2)�� use dynamic pricing to
modify the sale price of groceries and other foodstuffs regardless of the
frequency or duration of the price change, including price changes that occur
within minutes, hours, days, or across separate transactions;

���� (3)�� use personalized pricing
to modify the sale price of groceries and other foodstuffs based on a
consumer�s behavior, inferred data, or personally identifiable information; or

���� (4)�� install, operate, or use
an electronic shelf label system in retail locations that are 15,000 square
feet or larger until four years after the effective date of this act.

���� c.���� For purposes of this
section, surveillance-based price discrimination, dynamic pricing, and
personalized pricing shall not include a reduction in the posted sale price
that is uniformly offered or made available to all consumers who meet the
disclosed eligibility criteria.�

���� d.��� A retail food store may
offer a loyalty, membership, or reward program if any personally identifiable
information collected for the purpose of administering the program is not used
to personalize, optimize, or otherwise modify the sale price of groceries and
other foodstuffs offered for sale to a consumer.

���� e.���� It shall be an unlawful
practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a retail food
store to violate the provisions of this section.

���� 4.��� No later than 12 months
after the effective date of this act, the Division of Consumer Affairs shall
conduct a study on the use of electronic shelf label systems, as defined in
section 2 of this act, and the impact of these systems on pricing transparency
and employee job security. �The division shall submit a report of its findings
and recommendations to the Governor, and to the Legislature pursuant to section
2 of P.L.1991, c.164 (C.52:14-19.1).

���� 5.��� 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.

���� 6.��� 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 Pricing and Transparency Act.�

���� Under the bill, a retail food
store is required to clearly and conspicuously post the sale price of groceries
and other foodstuffs. The provisions of this bill prohibit retail food stores
from using surveillance-based price discrimination, dynamic pricing, or
personalized pricing to modify the sale price of groceries and other
foodstuffs. �This includes price changes that occur within minutes, hours,
days, or across separate transactions, and price changes based on a consumer�s
behavior, inferred data, or personally identifiable information.

���� The bill further prohibits
retail food stores that are 15,000 square feet or larger from using an
electronic shelf label system until four years after the effective date of this
bill.

���� Additionally, the provisions
of this bill clarify that surveillance-based price discrimination, dynamic
pricing, and personalized pricing do not include a reduction in the posted sale
price that is uniformly offered or made available to all consumers who meet
disclosed eligibility criteria.

���� Furthermore, retail food
stores may continue to offer loyalty, membership, or reward programs, provided
that any personally identifiable information collected to administer those
programs is not used to personalize, optimize, or otherwise modify the sale
price of groceries and other foodstuffs.

���� Finally, the bill requires the
Division of Consumer Affairs to conduct a study, no later than 12 months after
the effective date of this bill, on the use of electronic shelf label systems
and their impact on pricing transparency and employee job security, and to
submit a report with findings and recommendations to the Governor and the
Legislature.

���� 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.