Prohibits use and sale of algorithmic devices that set sale price of goods or services.
Summary
A4685 would make it unlawful for a business entity to use, sell, distribute, develop, transfer, provide access to, or otherwise make available an algorithmic device that uses a consumer’s personal data to recommend or set the sale price of goods or services. In practical terms, the bill targets pricing tools and software that rely on individualized consumer data to determine what price a person sees or is charged for a product or service.
The bill also amends New Jersey’s consumer fraud law definitions to add terms for “algorithmic device,” “consumer,” and “personal data,” and to clarify related terms such as “business entity” and “service.” It authorizes the Attorney General to bring civil actions for violations and seek damages, injunctive relief, restitution, return of illegal profits, and civil penalties of up to $1,000 per violation, with attorney’s fees and costs available to the State if it prevails. The Division of Consumer Affairs would be required to adopt implementing regulations, and the act would take effect seven months after enactment.
Impact
The bill would expand New Jersey consumer protection law by creating a new prohibition on algorithmic pricing tools that use personal data to set or recommend prices. It would add new statutory definitions to the Consumer Fraud Act framework and give the Attorney General direct enforcement authority, including civil penalties and equitable remedies, while also requiring regulatory implementation by the Division of Consumer Affairs. Businesses that develop, license, or deploy personalized pricing software for goods or services would be the primary entities affected.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes, the available record suggests a consumer-protection-oriented measure with a clear enforcement focus and no documented opposition in the materials provided. The sponsorship and framing indicate concern about the use of personal data in pricing decisions and a preference for restricting that practice rather than regulating it more lightly.
Contention
The main point of contention is likely to be the breadth of the ban on algorithmic pricing tools, especially the prohibition on not only using but also selling, distributing, developing, transferring, or providing access to such devices. Businesses that rely on dynamic pricing, personalization, or data-driven pricing software may view the measure as overly broad or difficult to comply with, while consumer advocates would likely support it as a privacy and fairness safeguard. Another possible issue is the bill’s use of broad definitions for personal data and algorithmic devices, which could raise questions about scope and enforcement.