WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(a) 1 It shall be unlawful for a business entityBusiness entity"Business entity" means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association, or any other legal commercial entity organized under the laws of this State or any other state or foreign jurisdiction.N.J.S.A. 56:9-2(f) to use, sell, distribute, develop, transfer, provide access to, or otherwise make available by any means, including through a subscription or the sale of a service, an algorithmic deviceAlgorithmic device"Algorithmic device" means a device, such as a software program, that uses one or more algorithms to perform calculations using a consumer's personal data to recommend or set the sale price for goods or services.N.J.S.A. 56:9-2(e) that uses a consumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g)'s personal dataPersonal data"Personal data" means any information that, regardless of how the information is collected, inferred, or obtained, is linked or reasonably linkable to a specific consumer or consumer's computer, mobile telecommunications service device, or any other Internet-connected device.N.J.S.A. 56:9-2(h) to recommend or set the sale price for goods or services.
(b) In addition to the penalties established pursuant to section 7 of P.L.1970, c.73 (C.56:9-7), the Attorney General may file a civil action for a violation of subsection a. of this section, for damages, injunctive relief, restitution or return of illegal profits, civil penalties of up to $1,000 per violation, or some combination of these penalties. The court shall award reasonable attorney's fees and costs to the Attorney General if the Attorney General is the prevailing party in the civil action.
(c) The Director of the Division of ConsumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g) 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.
Section 1 is the bill's operative provision. It establishes a categorical prohibition on business entities using, selling, distributing, developing, transferring, or providing access to algorithmic devices that use a consumer's personal data to recommend or set sale prices. The prohibition covers every point in the supply chain — from the developer who builds the tool to the retailer who uses it. The breadth is notable: it does not limit the prohibition to surveillance-derived data or to pricing that results in discriminatory outcomes; any use of personal data in algorithmic pricing is prohibited.
Enforcement is exclusively through the Attorney General, who may bring a civil action seeking damages, injunctive relief, restitution, return of illegal profits, and civil penalties up to $1,000 per violation. The Director of the Division of Consumer Affairs is separately authorized to adopt implementing regulations.
(a) As used in this act, unless the context otherwise requires, "personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a)" shall mean any natural personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a) or personsPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a), or any corporation, partnership, company, trust or association of personsPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a).
(b) "Trade or commerce" shall include all economic activity involving or relating to any commodity or service.
(c) "Commodity" shall mean any kind of real or personal property.
(d) "Service" shall mean any activity which is performed in whole or in part for the purpose of financial gain, including, but not limited to, sale, rental, leasing or licensing for use.
(e) "Algorithmic deviceAlgorithmic device"Algorithmic device" means a device, such as a software program, that uses one or more algorithms to perform calculations using a consumer's personal data to recommend or set the sale price for goods or services.N.J.S.A. 56:9-2(e)" means a device, such as a software program, that uses one or more algorithms to perform calculations using a consumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g)'s personal dataPersonal data"Personal data" means any information that, regardless of how the information is collected, inferred, or obtained, is linked or reasonably linkable to a specific consumer or consumer's computer, mobile telecommunications service device, or any other Internet-connected device.N.J.S.A. 56:9-2(h) to recommend or set the sale price for goods or services.
(f) "Business entityBusiness entity"Business entity" means any natural or legal person, business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association, or any other legal commercial entity organized under the laws of this State or any other state or foreign jurisdiction.N.J.S.A. 56:9-2(f)" means any natural or legal personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a), business corporation, professional services corporation, limited liability company, partnership, limited partnership, business trust, association, or any other legal commercial entity organized under the laws of this State or any other state or foreign jurisdiction.
(g) "ConsumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g)" means a personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a) who is a resident of this State acting only in an individual or household context. "ConsumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g)" shall not include a personPerson"person" shall mean any natural person or persons, or any corporation, partnership, company, trust or association of persons.N.J.S.A. 56:9-2(a) acting in a commercial context.
(h) "Personal dataPersonal data"Personal data" means any information that, regardless of how the information is collected, inferred, or obtained, is linked or reasonably linkable to a specific consumer or consumer's computer, mobile telecommunications service device, or any other Internet-connected device.N.J.S.A. 56:9-2(h)" means any information that, regardless of how the information is collected, inferred, or obtained, is linked or reasonably linkable to a specific consumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g) or consumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g)'s computer, mobile telecommunications service device, or any other Internet-connected device.
Section 2 amends the New Jersey Antitrust Act's definitions section to add four new defined terms: algorithmic device, business entity, consumer, and personal data. It also makes minor formatting changes to existing definitions of person, trade or commerce, commodity, and service. The definitions are broad — personal data encompasses any information linked or reasonably linkable to a consumer or their devices, regardless of how collected or inferred, and algorithmic device covers any software using algorithms to calculate prices from personal data.
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 ConsumerConsumer"Consumer" means a person who is a resident of this State acting only in an individual or household context. "Consumer" shall not include a person acting in a commercial context.N.J.S.A. 56:9-2(g) Affairs may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
Section 3 sets the effective date at the first day of the seventh month following enactment, giving businesses approximately six months to come into compliance. The Director of the Division of Consumer Affairs may take anticipatory administrative action — including rulemaking — before the effective date.