Prohibits certain businesses from using dynamic, surveillance, or personalized algorithmic pricing when selling groceries to consumers.
This bill would make it an unlawful practice under New Jersey’s Consumer Fraud Act for a retail food store or third-party grocery delivery platform to use dynamic pricing, surveillance pricing, or personalized algorithmic pricing when selling groceries and other foodstuffs to consumers, whether in person or online. The bill defines these pricing methods broadly, including pricing based on near-real-time algorithmic recalibration, consumer data linked to a specific person or device, and information gathered through surveillance technologies such as cameras, sensors, device tracking, or biometric monitoring.
The bill expressly preserves ordinary discounts and promotions, including loyalty program benefits and price reductions based on previous purchase history. It also directs the Director of the Division of Consumer Affairs to adopt implementing regulations. In addition, the bill creates a special nonlapsing “Grocery Pricing Fairness Fund” in the Department of the Treasury, funded by penalties collected for violations, and requires annual appropriations from that fund to the Department of Agriculture for distribution to community food pantries for grocery purchases.
The bill would amend and supplement New Jersey’s consumer protection laws by adding a specific prohibition on certain algorithmic and data-driven grocery pricing practices. Violations would be treated as unlawful practices under the Consumer Fraud Act, exposing covered businesses to existing CFA remedies and penalties, including monetary fines, cease-and-desist orders, treble damages, punitive damages, and costs. The measure would also create a new state fund and redirect penalty revenue to food assistance efforts through community food pantries, with administration shared among the Treasury, Agriculture, Human Services, and Health departments.
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the bill appears to be framed as a consumer-protection and affordability measure aimed at preventing unfair or opaque grocery pricing. Its structure suggests support for transparency and limits on AI-driven pricing, while still allowing conventional discounts and loyalty programs. No formal vote history or hearing record is provided here, so there is no documented legislative sentiment beyond the bill’s pro-consumer framing.
The main point of contention is likely to be the scope of the ban on algorithmic pricing and how broadly terms like dynamic pricing, surveillance pricing, and personalized algorithmic pricing are defined. Retailers and grocery delivery platforms may argue that the bill could restrict legitimate pricing tools, inventory management, or targeted promotions, while supporters would likely contend that the measure is needed to prevent discriminatory or exploitative pricing based on consumer data and surveillance. Another possible issue is enforcement, since the bill relies on Consumer Fraud Act remedies and would require regulatory implementation by the Division of Consumer Affairs.