Overview
On July 20, 2026, New Jersey Governor Mikie Sherrill signed the Forbidding the Algorithmic Inflation of Rent (FAIR) Act into law, making New Jersey the fourth state to regulate algorithmic rent-setting practices. Three days later, on July 23, 2026, Governor Sherrill signed the Fair Price Protection Act, which targets “surveillance pricing”—the practice of using or collecting personal data about a user and using an algorithm or artificial intelligence to charge different consumers different prices for the same products. Together, these laws represent a significant expansion of New Jersey's consumer protection framework in the algorithmic pricing context.
What the New Laws Prohibit
The FAIR Act
The FAIR Act prohibits landlords and third-party coordinators from using algorithmic devices to coordinate rental prices or sharing sensitive market data—such as rental prices, occupancy levels, or material lease terms—that facilitates such coordination. An “algorithmic device” is defined as any device that uses algorithms to process data relating to rental prices, occupancy levels, or material lease terms. Importantly, an “algorithmic device” does not include: “(1) a spreadsheet that (a) operates without artificial intelligence and (b) requires human analysis to process or otherwise perform calculations of data; or (2) a database that only uses an algorithm to query unprocessed data stored on or within that database.” The law is set to take effect on July 1, 2027.
The Fair Price Protection Act
The Fair Price Protection Act prohibits retail food stores and third-party grocery delivery platforms from using personal data—such as online activity, location, or purchasing history—to set individualized prices for consumers. It also imposes a one-year moratorium on the new use of electronic shelf labels to allow for further study of the effects of such technology by the New Jersey Innovation Authority, though stores may continue to use, repair, or replace existing labels during this period. The law does not prohibit loyalty programs, broadly available discounts, or other traditional promotional pricing.
The Act contains staggered effective dates. Section 5, which directs the New Jersey Innovation Authority to conduct a study on the use of electronic shelf labels, takes effect immediately. Section 4, which establishes the one-year moratorium on the new use of electronic shelf labels, takes effect on February 1, 2027. The Act’s remaining provisions take effect on August 1, 2027.
Enforcement and Penalties
Under the FAIR Act, any violation of the Act constitutes a violation of the New Jersey Antitrust Act, subjecting violators to civil penalties, injunctive relief, and treble damages. The new law requires the New Jersey Attorney General to establish an online database to receive complaints alleging any violation or suspected violation of the Act.
Under the Fair Price Protection Act, a consumer fraud violation may be punishable by up to $20,000 in fines and additional civil enforcement penalties from the Attorney General’s Office.
Key Takeaways
- Landlords and property managers should audit rent-setting systems to ensure they do not rely on shared market data or algorithmic devices to coordinate rental prices.
- Retailers and grocery delivery platforms should review data collection and pricing practices to ensure that personal consumer data is not being used to set individualized prices.
- Affected businesses should coordinate with third-party technology vendors to confirm that algorithmic tools and electronic shelf label systems comply with the new requirements, and should monitor for further regulatory guidance as these laws take effect.
- Relevant personnel—including property managers, leasing agents, and retail operations staff—should be trained on the requirements of both laws to ensure organization-wide compliance.
As noted in a previous alert on this topic, New Jersey is one of several states focused enacting laws regulating algorithmic and surveillance pricing. Please contact us if you would like to discuss how these new laws may affect your business. Crowell's State AG Group will continue to monitor developments in this space and stands ready to assist clients in navigating this rapidly evolving regulatory landscape.
This alert is provided for informational purposes only and does not constitute legal advice. Please contact us if you would like to discuss how this legislation may affect your business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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