Provides disparate impact based on automated decision system as cause of action for certain consumers.

This New Jersey bill expands civil rights protections by allowing individuals to sue if automated systems used in housing or lending unfairly discriminate against them. It defines "automated decision systems" broadly to include artificial intelligence and algorithms used for tasks like mortgage approvals, tenant screening, and rental pricing. Under the law, companies using these tools must prove their systems do not negatively impact protected groups, such as those defined by race, age, or disability, and they face liability if they cannot show a legitimate reason for the disparity or if a less discriminatory alternative exists. To ensure ongoing compliance, covered entities are required to conduct algorithmic impact assessments at least every two years and keep records available for review by state officials.