S 3612 New Jersey Senate · 2026-2027 Regular Session

Establishes "Fair Price Protection Act."*

This bill prohibits New Jersey businesses from using consumers' personal data - including biometric information, genetic data, or details about protected characteristics like race, age, or gender - to set prices for goods or services. It specifically bans "personalized algorithmic pricing" (using algorithms to adjust prices based on personal data) and "surveillance pricing" (customizing prices based on tracking consumer behavior). The law does not prevent businesses from offering standard discounts, promotions, or loyalty programs. It directly affects all businesses selling merchandise or services to New Jersey residents and enforces penalties of up to $20,000 per violation under the state's Consumer Fraud Act.

Issues: ✓ Technology

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 19, 2026 Last action Jun 30, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Senate Committee Substitute → Reprint Of Substitute · 15 edits

MAJOR

The bill was substantially reworked after passing through the Senate Budget and Appropriations Committee. The most significant change replaces the outright ban on electronic shelving labels with a one-year moratorium followed by a regulatory study, adds a new exemption for food service establishments (restaurants), introduces a 24-hour limit on price changes, expands loyalty program requirements, and restructures definitions to narrow some protections while broadening others. The effective date was also staggered, with the moratorium taking effect in 6 months and most other provisions in 1 year.

SCOPE

The outright prohibition on electronic shelving labels (old section 4) was replaced with a one-year moratorium on new use of electronic shelf labels. After the moratorium expires, they may be used if compliant with consumer protection law and regulations. An exception allows repair or replacement of existing labels.

New section 6 exempts food service establishments (restaurants, cafes) from the entire act. Food or beverages prepared for immediate consumption on or off the premises are excluded from the definition of 'groceries and other foodstuffs.'

The bill moved from the Senate Commerce Committee to the Senate Budget and Appropriations Committee, which reported it with amendments on June 24, 2026.

REQUIREMENT

A new restriction was added to section 3(b)(1): when pricing based on reasonable costs, a price shall not be changed more than once in a 24-hour period.

Loyalty programs that include pricing benefits offered by another person must now meet four conditions: voluntary opt-in, uniform terms for all members, clear disclosures of pricing benefits and data practices (with a 14-day deadline to provide them to the Division of Consumer Affairs upon request), and public disclosure of all terms and data practices.

Bona fide discount eligibility conditions must now be 'publicly and conspicuously disclosed' rather than just 'conspicuously disclosed.'

DEFINITION

The definition of 'bona fide discount' was narrowed to require the lower price be part of a person's 'recent, regular course of business,' rather than simply being 'widely offered to the public.'

The definition of 'electronic shelving label' was broadened: the 'Internet-connected' requirement was removed, and it now explicitly includes labels visible only after scanning a QR code, barcode, or other code.

The definition of 'personalized algorithmic pricing' was removed entirely. It was replaced with a new definition of 'Price' that references N.J.A.C.13:45A-9.1 and covers stated monetary amounts before and after discounts.

The definition of 'surveillance pricing' was restructured to specifically reference 'data collected through electronic surveillance technology' and the old broader definition was struck.

The 'personal data' definition was narrowed from protecting any 'person' to only 'consumer,' potentially reducing who is covered.

The 'location' definition exception was narrowed: data used to 'calculate operational costs, or assess supply, demand, and local marketplace conditions' is no longer excluded, meaning more location-based pricing data falls under the act.

FISCAL

New section 5 requires the New Jersey Innovation Authority to conduct a study on electronic shelf labels during the moratorium, examining their effects and impact on surveillance pricing, with findings and recommendations due to the Governor and Legislature at least six months before the moratorium ends.

ENFORCEMENT

A new section 7 grants the Attorney General broader enforcement authority over 'any violation of this act' (not limited to specific sections), while the old narrower enforcement provision was struck. The new provision also allows action when the AG deems it in the public interest.

TIMELINE

The effective date was changed from a uniform 6-month delay to a staggered schedule: the moratorium (section 4) takes effect in 6 months, the study requirement (section 5) takes effect immediately, and all other provisions take effect in 12 months.

Introduced → Senate Committee Substitute · 8 edits

MODERATE

The Senate Committee Substitute dramatically narrows the bill's scope from prohibiting algorithmic pricing on all merchandise and services to targeting only groceries and other foodstuffs. It removes broad definitions covering biometric data, genetic information, and protected class data, replaces them with grocery-specific terms, adds a new prohibition on electronic shelving labels, expands exemptions for loyalty programs and group-based discounts, and creates explicit Attorney General enforcement authority with $50,000 per-violation penalties.

Scope change

Scope is significantly narrowed from a broad prohibition on algorithmic and surveillance pricing across all merchandise and services (including rentals, leases, and licensing) to a targeted prohibition limited to groceries and other foodstuffs. The covered actor broadens from 'business entity' to 'person,' but the subject matter narrows considerably.

SCOPE

The bill's coverage is narrowed from all 'merchandise or services' (defined as any goods, commodities, services, rental, leasing, licensing) to only 'groceries and other foodstuffs' (dairy, meat, produce, seafood, beverages, snacks, candy, baked goods, paper products, cleaning items, health/beauty products, frozen foods, pet foods, and other edible products).

DEFINITION

New definitions added for 'Bona fide discount,' 'Electronic shelving label,' 'Groceries and other foodstuffs,' 'Location' (geolocation data used to infer identity or protected class membership), and 'Person.' The bill is now formally named the 'Fair Price Protection Act.'

Definitions for 'Biometric data,' 'Business entity,' 'Consumer,' 'Genetic information,' 'Merchandise,' 'Protected class data,' and 'Service' are all removed. The covered actor changes from 'business entity' to the broader term 'person.'

REQUIREMENT

New Section 4 specifically prohibits using electronic shelving labels connected to technology that employs personalized algorithmic pricing, surveillance pricing, or any data-based pricing strategy for groceries and foodstuffs.

New Section 3c restricts data use: if personal data is used to offer price differences under the exemptions, that data shall not be used for any other purpose.

ELIGIBILITY

Exemptions are expanded from a single general exception for discounts and loyalty programs to three specific categories: (1) price differences based on reasonable costs of providing goods to different persons, (2) bona fide discounts with conspicuously disclosed eligibility criteria uniformly offered to broadly defined groups (e.g., teachers, veterans), and (3) bona fide loyalty programs including points, credits, or purchase-based coupons.

ENFORCEMENT

New Section 5 gives the Attorney General explicit authority to bring civil actions on behalf of residents with specific remedies: injunctive relief, enforcement of compliance, actual damages or $50,000 per violation (whichever is greater), and any other restitution or penalty the court deems appropriate.

Rulemaking authority changes from 'shall adopt rules' to 'may adopt rules,' making regulatory implementation discretionary rather than mandatory for the Director of the Division of Consumer Affairs.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 26, 2026

Committee

Recommitted to Senate Budget and Appropriations Committee

upper

Mar 16, 2026

Committee

Referred to Senate Budget and Appropriations Committee

upper

Feb 19, 2026

Introduced

Introduced in the Senate, Referred to Senate Commerce Committee

upper

2 primary · 7 co-sponsors