ASSEMBLY APPROPRIATIONS COMMITTEE
STATEMENT TO
[First Reprint]
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, Nos. 4085 and 4523
with committee amendments
STATE OF NEW JERSEY
DATED: JUNE 23, 2026
The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill Nos. 4085 and 4523 (1R) ACS.
As amended, this committee substitute makes it an unlawful practice and a violation of the consumer fraud act for a person to use surveillance pricing or any other pricing strategy that determines or varies the sale price of groceries and other foodstuffs based, in whole or in part, on personal data. This provision would take effect one year after the date of enactment.
The committee 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 consumers, provided that a price is not changed more than once in a 24-hour period;
(2) bona fide discounts for which eligibility conditions or criteria are publicly and 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) bona fide discounts offered, under certain circumstances, 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 discounts, rebates, or coupons to individual consumers based on their purchases and loyalty programs that include pricing benefits offered by another person.
The amended committee substitute establishes a one-year moratorium on the new use of electronic shelf labels in this State. Upon the expiration of the moratorium, the new 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.
Before and during the moratorium, the New Jersey Innovation Authority, in consultation with the Division of Consumer Affairs, is required to 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. The committee substitute requires the New Jersey Innovation Authority 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.
As amended, the committee substitute provides that the provisions do not apply to the pricing, advertisement, offer, or sale of food or beverages by an establishment primarily engaged in the preparation and sale of food or beverages for immediate consumption, whether the food or beverages are consumed on or off the premises.
The Attorney General may bring a civil action to enjoin an act or practice that is in violation of the provisions of the committee 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.
COMMITTEE AMENDMENTS:
The committee amended the substitute to:
(1) clarify that the term “groceries and other foodstuffs,” does not include any food or beverages prepared for immediate consumption on or off the premises of a food service establishment;
(2) clarify that the term “price” includes all related costs, fees, and other material terms of the transaction that directly affect the amount paid by the consumer have been applied;
(3) clarify that, under certain circumstances and upon request, a person is required to make loyalty program disclosures available to the Division of Consumer Affairs in the Department of Law and Public Safety, no later than 14 days from the date the request was made;
(4) clarify that, under certain circumstances, the loyalty program is to disclose all terms and conditions, and data practices to the public;
(5) clarify that the provisions of the committee substitute do not apply to the pricing, advertisement, offer, or sale of food or beverages by an establishment primarily engaged in the preparation and sale of food or beverages for immediate consumption, whether the food or beverages are consumed on or off the premises;
(6) clarify that the provision establishing the one-year moratorium is to take effect on the first day of the seventh month next following the date of enactment;
(7) clarify that the provision requiring the New Jersey Innovation Authority, in consultation with the Division of Consumer Affairs, to conduct a study on the use of electronic shelf labels is to take effect immediately; and
(8) make other technical and clarifying changes.
FISCAL IMPACT:
Fiscal information for this bill is currently unavailable.