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S4314
SENATE, No. 4314
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 21, 2026
Sponsored by:
Senator� JOSEPH P. CRYAN
District 20 (Union)
Co-Sponsored by:
Senator Diegnan
SYNOPSIS
���� Prohibits personalized algorithmic pricing and
surveillance-based pricing by certain retailers in online commerce.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
prohibiting certain pricing structures in online
commerce 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.��� As used in this act:
���� �Biometric data� means the
same as that term is defined by section 1 of P.L.2023, c.266 (C.56:8-166.4). �
���� �Business entity� means:
���� (1) an online retailer that
sells goods or services via the Internet and generates at least $10 million in
annual gross revenue from sales in New Jersey;
���� (2) an airline;
���� (3) a ticket broker; or
���� (4) a transportation network
company.
���� �Consumer� means the same as
that term is defined by section 1 of P.L.2023, c.266 (C.56:8-166.4).
���� �Personal data� means the same
as that term is defined by section 1 of P.L.2023, c.266 (C.56:8-166.4).
���� �Personalized algorithmic
pricing� means a pricing strategy that is determined, adjusted, optimized, or
recommended by an algorithm or automated system using a consumer�s personal
data, including data that is derived or inferred, and that results in price
variation for individual consumers or groups of consumers.
���� �Protected class data� means
information about a consumer or a group of consumers that directly, in
combination or by implication, 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 characteristics, sex, sexual orientation, gender identity or
expression, pregnancy-related conditions, marital status, familial status,
religion, and reproductive health care.
���� �Surge pricing� means charging
a transportation network company rider a higher fare rate than the usual fare
rate charged for the prearranged ride during times of high demand for
prearranged rides including, but not limited to, by use of a rate multiplier.
���� �Surveillance-based pricing�
means a pricing strategy that is used to offer or set a customized sale price
for merchandise or services for a specific consumer or group of consumers
based, in whole or in part, on information collected through electronic
surveillance technology.
The term includes the use of
technological methods, systems, or tools including, but not limited to,
sensors, cameras, device tracking, biometric data monitoring, and other forms
of observation or data collection, capable of gathering information about a
consumer�s behavior, characteristics, location, and other personal attributes.
���� �Ticket broker� means a person
situated in and operating in this State who is involved in the business of
reselling tickets of admission to places of entertainment and who charges a
premium in excess of the price, plus taxes, printed on the tickets.� For the
purposes of this act the term �ticket broker� shall not include an individual
not regularly engaged in the business of reselling tickets; who resells less
than 30 tickets during any one-year period; and who obtained the tickets for the
individual�s own use or the use of the individual�s family, friends, or
acquaintances.
���� �Transportation network
company� means a corporation, partnership, sole proprietorship, or other entity
that is registered as a business in the State or operates in this State, and
uses a digital network to connect a transportation network company rider to a
transportation network company driver to provide a prearranged ride.� A
transportation network company shall not include an individual, corporation,
partnership, sole proprietorship, or other entity arranging non-emergency
medical transportation for individuals qualifying for Medicaid under the �New
Jersey Medical Assistance and Health Services Act,� P.L.1968, c.413 (C.30:4D-1
et seq.), or Medicare under section 102 of the �Health Insurance for the Aged
Act� (42 U.S.C. s.1395 et seq.) pursuant to a contract with the State or a
managed care organization, whereby Medicaid or Medicare funding is used to pay
for the non-emergency medical transportation services.
���� 2.��� a. Notwithstanding any
law, regulation, or rule to the contrary, it shall be an unlawful practice and
a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a business entity to use
personalized algorithmic pricing, surveillance-based
pricing, or a pricing strategy that determines or varies the sale price of
merchandise or services based, in whole or in part, on a consumer�s personal
data including, but not limited to, biometric data and protected class data.
���� b.��� The provisions of this
section shall not prohibit:
���� (1)�� a business entity from
providing a consumer a discount, promotional price, or loyalty program benefit;
or
���� (2)�� surge pricing or price
changes based on changes in supply.
���� 3.��� 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.
���� 4.��� This act shall take
effect on the first day of the fourth month next following enactment, except
that the Director of the Division of Consumer Affairs in the Department of Law
and Public Safety may take any anticipatory administrative action in advance as
shall be necessary for the implementation of this act. �
STATEMENT
���� This bill supplements the
consumer fraud act to prohibit certain business entities from using consumers�
personal data to set prices in online forums.�
���� Under the bill, airlines,
large online retailers, ticket brokers, and ride share businesses are
prohibited from using personalized algorithmic pricing, surveillance-based
pricing, or a pricing strategy that determines or varies the sale price of
merchandise or services based, in whole or in part, on a consumer�s personal
data including biometric data or protected class data.� The provisions of the
bill do not limit these businesses from providing consumers with a discount,
promotional price, or loyalty program benefit.
���� A violation of the provisions
of this bill is an unlawful practice under the consumer fraud act, which is
punishable by a monetary penalty of not more than $10,000 for a first offense
and not more than $20,000 for a subsequent offense.� Additionally, 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.�