Bill Text: NJ S4314 | 2026-2027 | Regular Session | Introduced
Bill Title: Prohibits personalized algorithmic pricing and surveillance-based pricing by certain retailers in online commerce.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-05-21 - Introduced in the Senate, Referred to Senate Commerce Committee [S4314 Detail]
Download: New_Jersey-2026-S4314-Introduced.html
Sponsored by:
Senator JOSEPH P. CRYAN
District 20 (Union)
SYNOPSIS
Prohibits personalized algorithmic pricing and surveillance-based pricing by certain retailers in online commerce.
CURRENT VERSION OF TEXT
As introduced.
An Act prohibiting certain pricing structures in online commerce 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:
"Biometric data" means the same as that term is defined by section 1 of P.L.2023, c.266 (C.56:8-166.4).
"Business entity" means:
(1) an online retailer that sells goods or services via the Internet and generates at least $10 million in annual gross revenue from sales in New Jersey;
(2) an airline;
(3) a ticket broker; or
(4) a transportation network company.
"Consumer" means the same as that term is defined by section 1 of P.L.2023, c.266 (C.56:8-166.4).
"Personal data" means the same as that term is defined by section 1 of P.L.2023, c.266 (C.56:8-166.4).
"Personalized algorithmic pricing" means a pricing strategy that is determined, adjusted, optimized, or recommended by an algorithm or automated system using a consumer's personal data, including data that is derived or inferred, and that results in price variation for individual consumers or groups of consumers.
"Protected class data" means information about a consumer or a group of consumers that directly, in combination or by implication, identifies a characteristic that is legally protected from discrimination under the laws of this State or under federal law including, but not limited to, ethnicity, national origin, age, disability, predisposing genetic characteristics, sex, sexual orientation, gender identity or expression, pregnancy-related conditions, marital status, familial status, religion, and reproductive health care.
"Surge pricing" means charging a transportation network company rider a higher fare rate than the usual fare rate charged for the prearranged ride during times of high demand for prearranged rides including, but not limited to, by use of a rate multiplier.
"Surveillance-based pricing" means a pricing strategy that is used to offer or set a customized sale price for merchandise or services for a specific consumer or group of consumers based, in whole or in part, on information collected through electronic surveillance technology.
The term includes the use of technological methods, systems, or tools including, but not limited to, sensors, cameras, device tracking, biometric data monitoring, and other forms of observation or data collection, capable of gathering information about a consumer's behavior, characteristics, location, and other personal attributes.
"Ticket broker" means a person situated in and operating in this State who is involved in the business of reselling tickets of admission to places of entertainment and who charges a premium in excess of the price, plus taxes, printed on the tickets. For the purposes of this act the term "ticket broker" shall not include an individual not regularly engaged in the business of reselling tickets; who resells less than 30 tickets during any one-year period; and who obtained the tickets for the individual's own use or the use of the individual's family, friends, or acquaintances.
"Transportation network company" means a corporation, partnership, sole proprietorship, or other entity that is registered as a business in the State or operates in this State, and uses a digital network to connect a transportation network company rider to a transportation network company driver to provide a prearranged ride. A transportation network company shall not include an individual, corporation, partnership, sole proprietorship, or other entity arranging non-emergency medical transportation for individuals qualifying for Medicaid under the "New Jersey Medical Assistance and Health Services Act," P.L.1968, c.413 (C.30:4D-1 et seq.), or Medicare under section 102 of the "Health Insurance for the Aged Act" (42 U.S.C. s.1395 et seq.) pursuant to a contract with the State or a managed care organization, whereby Medicaid or Medicare funding is used to pay for the non-emergency medical transportation services.
2. a. Notwithstanding any law, regulation, or rule to the contrary, it shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) for a business entity to use personalized algorithmic pricing, surveillance-based pricing, or a pricing strategy that determines or varies the sale price of merchandise or services based, in whole or in part, on a consumer's personal data including, but not limited to, biometric data and protected class data.
b. The provisions of this section shall not prohibit:
(1) a business entity from providing a consumer a discount, promotional price, or loyalty program benefit; or
(2) surge pricing or price changes based on changes in supply.
3. 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.
4. This act shall take effect on the first day of the fourth month next following enactment, except that the Director of the Division of Consumer Affairs in the Department of Law and Public Safety may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill supplements the consumer fraud act to prohibit certain business entities from using consumers' personal data to set prices in online forums.
Under the bill, airlines, large online retailers, ticket brokers, and ride share businesses are prohibited from using personalized algorithmic pricing, surveillance-based pricing, or a pricing strategy that determines or varies the sale price of merchandise or services based, in whole or in part, on a consumer's personal data including biometric data or protected class data. The provisions of the bill do not limit these businesses from providing consumers with a discount, promotional price, or loyalty program benefit.
A violation of the provisions of this bill is an unlawful practice under the consumer fraud act, which is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for a subsequent offense. Additionally, 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.
