TRENTON, NJ – A new bill introduced this week in the New Jersey Senate aims to stop companies from secretly using consumers’ personal data to determine how much they pay for goods and services.
Sponsored by Senator Joseph P. Cryan (D-Union), Bill S3612 would make it illegal for any business to use personal data—such as biometric identifiers, genetic information, or other personal details—to set or vary prices for individual customers. The legislation targets what it calls “personalized algorithmic pricing” and “surveillance pricing”, both of which rely on automated systems that analyze personal information to calculate custom prices.
The bill defines personalized algorithmic pricing as any system that adjusts prices using a consumer’s personal data, while surveillance pricing covers technology-based tracking—such as cameras, sensors, or device monitoring—to gather behavioral information that could influence cost. Violators would face penalties under the state’s Consumer Fraud Act, including fines up to $10,000 for a first offense and $20,000 for subsequent violations.
Cryan said the measure is designed to close loopholes that allow corporations to exploit private data in ways most shoppers never realize. Under the proposed law, offering discounts, promotions, or loyalty program benefits would still be allowed, as long as those price differences are transparent and not based on personal surveillance or biometric tracking.
Digital fairness and data transparency
Consumer advocates have long raised concerns that some online retailers and service providers use data analytics to quietly charge different prices based on factors such as browsing history, location, or even device type. By prohibiting these practices, supporters say the bill would promote data privacy, strengthen public trust, and ensure equal treatment in New Jersey’s digital marketplace.
The legislation also directs the Division of Consumer Affairs to develop enforcement rules and oversee compliance once the act takes effect—scheduled for the seventh month after enactment.
Key points:
- Bill S3612 bans using personal or biometric data to adjust pricing
- Violations fall under the New Jersey Consumer Fraud Act
- Businesses may still offer discounts or loyalty deals transparently
If passed, New Jersey would join a growing number of states pushing back against algorithmic pricing and surveillance-based commerce, signaling a new front in America’s debate over digital rights and fair trade.