LEGISLATIVE FISCAL ESTIMATE
SENATE COMMITTEE SUBSTITUTE FOR
SENATE, Nos. 3612 and 3717
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 25, 2026
SUMMARY
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Synopsis: |
Establishes “Fair Price Protection Act.” |
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Type of Impact: |
Annual State expenditure and revenue increases. |
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Agencies Affected: |
Department of Law and Public Safety; Department of the Treasury. |
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Office of Legislative Services Estimate |
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Annual Fiscal Impact |
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State Expenditure Increase |
Indeterminate |
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State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that annual Department of Law and Public Safety expenditures would increase for investigations, civil enforcement actions, and potential litigation undertaken by the Office of the Attorney General. The magnitude of these costs, as well as any associated courts costs, is indeterminate and would depend on the extent to which there are violations of the bill’s provisions.
· The OLS concludes there may be an indeterminate annual State revenue increase from monetary penalties and damages collected from violators of the bill’s provisions.
BILL DESCRIPTION
This bill 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 bill 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.
The Attorney General may bring a civil action to enjoin an act or practice that is in violation of the provisions of the bill, 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.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes the bill would result in an indeterminate annual State expenditure increase for the Department of Law and Public Safety to enforce the bill’s provisions, and indeterminate annual State revenue increases from monetary penalties and damages collected from violators of the bill’s provisions.
State Expenditure Increase: The OLS finds that annual Department of Law and Public Safety expenditures would increase for investigations, civil enforcement actions, and potential litigation undertaken by the Office of the Attorney General. The magnitude of these costs, as well as any associated courts costs, is indeterminate and would depend on the extent to which there are violations of the bill’s provisions.
State Revenue Increase: A violation of the bill’s prohibition on the use of surveillance pricing and electronic shelving labels is an unlawful practice and violation of 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. The bill also provides that for any violation, the Attorney General may bring a civil action to enjoin the act or practice of a violator; enforce compliance with bill’s provisions; obtain for certain acts the greater of actual monetary damages or $50,000; or obtain any other restitution, penalty, or relief a court of competent jurisdiction deems appropriate.
The OLS, however, has no information on which to base an estimate of the number and magnitude of future penalty assessments and payments and thus cannot project the amount the State will collect.
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Section: |
Law and Public Safety |
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Analyst: |
Lead Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).