Prohibits personalized algorithmic pricing and surveillance-based pricing by certain retailers in online commerce.
S4314 would amend New Jersey’s consumer fraud law to prohibit certain businesses from using consumers’ personal data to set individualized prices in online commerce. The bill applies to large online retailers with at least $10 million in annual New Jersey sales, airlines, ticket brokers, and transportation network companies. It bars “personalized algorithmic pricing,” “surveillance-based pricing,” and any pricing strategy that varies a sale price based in whole or in part on personal data, including biometric data and protected class data.
The bill defines surveillance-based pricing broadly to include pricing informed by electronic surveillance tools such as sensors, cameras, device tracking, and biometric monitoring. It also defines personalized algorithmic pricing to cover prices determined or adjusted by algorithms using personal data. The bill expressly allows discounts, promotional pricing, loyalty program benefits, and surge pricing or other price changes based on supply changes.
If enacted, the bill would supplement the New Jersey Consumer Fraud Act by making these pricing practices an unlawful practice under P.L.1960, c.39. That would expose violators to existing consumer fraud penalties, including civil monetary penalties, cease-and-desist orders, punitive damages, and treble damages and costs for injured parties. The Division of Consumer Affairs would be required to adopt implementing regulations, and the law would take effect on the first day of the fourth month after enactment.
The bill’s framing suggests a consumer-protection approach focused on fairness, transparency, and limiting the use of sensitive personal data in pricing. Because there are no committee transcripts or recorded votes provided, there is no direct evidence of legislative debate or formal support/opposition in the available record. Based on the text alone, the measure appears intended to address public concern over algorithmic discrimination and surveillance-driven price setting rather than to regulate ordinary discounts or demand-based pricing.
The main points of contention are likely to be the breadth of the ban and the scope of covered businesses. The bill reaches airlines, large online retailers, ticket brokers, and ride-share companies, and it uses broad definitions that include biometric data, protected class data, and surveillance technologies. Potential opponents may argue that the bill could restrict legitimate dynamic pricing, personalization, or business analytics, while supporters are likely to emphasize preventing discriminatory or opaque pricing practices. The bill tries to draw a line by excluding discounts, loyalty programs, and surge pricing tied to supply changes.