Sponsored by:
Assemblyman DAVID BAILEY, JR.
District 3 (Cumberland, Gloucester and Salem)
Assemblyman STERLEY S. STANLEY
District 18 (Middlesex)
Co-Sponsored by:
Assemblyman Venezia
SYNOPSIS
Prohibits use and sale of algorithmic devices that set sale price of goods or services.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain algorithmic devices and supplementing and amending P.L.1970, c.73.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. It shall be unlawful for a business entity to use, sell, distribute, develop, transfer, provide access to, or otherwise make available by any means, including through a subscription or the sale of a service, an algorithmic device that uses a consumer’s personal data to recommend or set the sale price for goods or services.
b. In addition to the penalties established pursuant to section 7 of P.L.1970, c.73 (C.56:9-7), the Attorney General may file a civil action for a violation of subsection a. of this section, for damages, injunctive relief, restitution or return of illegal profits, civil penalties of up to $1,000 per violation, or some combination of these penalties. The court shall award reasonable attorney’s fees and costs to the Attorney General if the Attorney General is the prevailing party in the civil action.
c. 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.
2. Section 2 of P.L.1970, c.73 (C.56:9-2) is amended to read as follows:
a. As used in this act, unless the context otherwise requires , “person” shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.
b. “Trade or commerce” shall include all economic activity involving or relating to any commodity or service.
c. “Commodity” shall mean any kind of real or personal property.
d. “Service” shall mean any activity which is performed in whole or in part for the purpose of financial gain [,] including , but not limited to , sale, rental, leasing or licensing for use.
e. “Algorithmic device” means a device, such as a software program, that uses one or more algorithms to perform calculations using a consumer’s personal data to recommend or set the sale price for goods or services.
f. “Business entity” means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association, or any other legal commercial entity organized under the laws of this State or any other state or foreign jurisdiction.
g. “Consumer” means a person who is a resident of this State acting only in an individual or household context. “Consumer” shall not include a person acting in a commercial context.
h. “Personal data” means any information that, regardless of how the information is collected, inferred, or obtained, is linked or reasonably linkable to a specific consumer or consumer’s computer, mobile telecommunications service device, or any other Internet-connected device.
(cf: P.L.1970, c.73, s.2)
3. 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 prohibits the use and sale of algorithmic devices that set the sale price of goods or services.
Specifically, the provisions of this bill prohibit business entities from using, selling, distributing, developing, transferring, providing access to, or otherwise make available by any means, including through a subscription or the sale of a service, an algorithmic device that uses a consumer’s personal data to recommend or set the sale price for goods or services.
The bill provides that the Attorney General may file a civil action for a violation for damages, injunctive relief, restitution or return of illegal profits, civil penalties of up to $1,000 per violation, or some combination of these penalties. A court is required to award reasonable attorney’s fees and costs to the Attorney General if the Attorney General is the prevailing party in the civil action.