ASSEMBLY CONSUMER AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, Nos. 4085 and 4523

STATE OF NEW JERSEY

DATED: MARCH 19, 2026

      The Assembly Consumer Affairs Committee reports favorably an Assembly Committee Substitute for Assembly Bill Nos. 4085 and 4523.

      This committee substitute makes it an unlawful practice and a violation of the consumer fraud act for a person to use personalized algorithmic pricing, surveillance pricing, or any pricing strategy that determines or varies the sale price of groceries and other foodstuffs based, in whole or in part, on personal data.

      The substitute does not prohibit any person from offering a different price on groceries and other foodstuffs based upon:

      (1)  reasonable costs associated with providing groceries and other foodstuffs to different persons;

      (2)  a bona fide discount for which eligibility conditions or criteria are conspicuously disclosed and uniformly offered based upon those conditions or criteria, and to which any member of a broadly defined group, including, but not limited to a group of teachers or veterans, is eligible; or

      (3)  a bona fide discount offered as part of a loyalty program, including loyalty programs that allow the accrual or exchange of points, credits, or any similar nonmonetary system of value, or loyalty programs that offer coupons to individual customers based on their purchases.

      The substitute also makes it an unlawful practice and a violation of the consumer fraud act for any person to use an electronic shelving label connected to any technology that employs personalized algorithmic pricing, surveillance pricing, or any pricing strategy that determines or varies the sale price of groceries and other foodstuffs based, in whole or in part, on personal data.

      This substitute 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 consultation with the Division of Consumer Affairs, would 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 substitute to submit, no later than six months before the expiration of the moratorium, the study’s findings and conclusions in a final report, together with any recommendations for legislative or administrative action to the Governor and to the Legislature.  Upon the expiration of the moratorium, the use of electronic shelf labels is permitted, provided its use is in compliance with current law or promulgated regulation, 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 this substitute, 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 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.