SENATE, No. 3732
STATE OF NEW JERSEY
222nd LEGISLATURE
INTRODUCED MARCH 5, 2026
Sponsored by:
Senator BRITNEE N. TIMBERLAKE
District 34 (Essex)
SYNOPSIS
Prohibits certain businesses from using dynamic, surveillance, or personalized algorithmic pricing when selling groceries to consumers.
CURRENT VERSION OF TEXT
As introduced.
An Actprohibiting certain pricing strategies and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Consumer" means a natural person who is seeking to purchase, or is solicited to purchase, groceries and other foodstuffs for personal, family, or household use.
"Dynamic pricing" means a pricing strategy that fluctuates the sale price of groceries and other foodstuffs under conditions where algorithmic or artificial intelligence models retrain or recalibrate information in near real-time or a short period of time. "Dynamic pricing" shall not include promotional pricing offers, loyalty program benefits, or other temporary discounts or changes to pricing related to retention of existing customers.
"Groceries and other foodstuffs" means dairy products, meat and delicatessen products, produce products, seafood products, carbonated beverages, coffee and other beverages, snack foods, candy products, baked products, paper products, household cleaning items, health and beauty products, frozen foods, pet foods and supplies, and any other edible product not previously listed.
"Personalized algorithmic pricing" means a pricing strategy that uses dynamic pricing and surveillance pricing derived from, or set by, an algorithm using consumer data, excluding consumer location data, that identifies, or could reasonably be linked to, a specific consumer or the consumer's electronic device, and that results in price variation for individual consumers or groups of consumers.
"Retail food store" means any retail establishment where groceries and other foodstuffs are regularly and customarily sold in a bona fide manner for off-premises consumption.
"Surveillance pricing" means a pricing strategy that is used to offer or set a customized sale price for groceries or other foodstuffs for a specific consumer or group of consumers based, in whole or in part, on information collected through electronic surveillance technology. "Surveillance pricing" shall include the use of technological methods, systems, or tools including, but not limited to, sensors, cameras, device tracking, biometric monitoring, and other forms of observation or data collection, capable of gathering information about a consumer's behavior, characteristics, location, or other personal attributes.
"Third-party grocery delivery
platform" means a business entity, outside of the operation of a retail food
store, that operates a website, mobile application, or digital platform that
facilitates, arranges, or enables the purchase or delivery of groceries and
other foodstuffs from a retail food store to a consumer.
2. a. It shall be considered an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a retail food store or a third-party grocery delivery platform to use dynamic pricing, surveillance pricing, or personalized algorithmic pricing when selling groceries and other foodstuffs, either in person or online, to a consumer.
b. The provisions of this section shall not limit any retail food store or third-party grocery delivery platform from providing consumers, based on previous purchase history, a discount, promotional price, or loyalty program benefit.
c. The Director of the Division of Consumer Affairs in the Department of Law and Public Safety shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the provisions of this act.
3. a. There is established in the Department of the Treasury a special fund to be known as the "Grocery Pricing Fairness Fund." The State Treasurer shall credit to the fund all monies received by the State for penalties assessed pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill). The fund shall be continuing and nonlapsing. The fund shall be administered by the State Treasurer, and any interest earned on monies in the fund shall be credited to the fund.
b. The Legislature shall annually appropriate from the fund monies to the Department of Agriculture for distribution to community food pantries. All funds received by community food pantries shall be utilized exclusively for the purchase of groceries and other foodstuffs. The Department of Agriculture shall cooperate with the Department of Human Services and the Department of Health to distribute the funds.
4. This act shall take effect on the first day of the seventh month next following the date of enactment, except that the Director of the Division of Consumer Affairs may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill prohibits certain businesses from using certain pricing strategies, such as dynamic pricing, surveillance pricing, or personalized algorithmic pricing, when selling groceries and other foodstuffs to consumers.
Under the bill, it is an unlawful practice and a violation of the consumer fraud act for a retail food store or a third-party grocery delivery platform to use dynamic pricing, surveillance pricing, or personalized algorithmic pricing when selling groceries and other foodstuffs, either in person or online, to a consumer. However, the provisions of this bill do not limit any retail food store or third-party grocery delivery platform from providing consumers, based on previous purchase history, a discount, promotional price, or loyalty program benefit.
An unlawful practice under the consumer fraud act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. All monies received from penalties assessed for violations of the provisions of this bill under the consumer fraud act are to be credited to the "Grocery Pricing Fairness Fund."
The "Grocery Pricing Fairness Fund" is a fund administered by the State Treasurer and funded by penalties collected under the bill. The Legislature is to annually appropriate monies from the fund to the Department of Agriculture for distribution to community food pantries. Funds provided to community food pantries are required to be used exclusively for the purchase of groceries and other foodstuffs. Additionally, the Department of Agriculture is to coordinate with the Departments of Human Services and Health to distribute the funds.