This bill aims to prohibit wholesale dealers in New Jersey from engaging in price gouging when selling physical goods, which are defined as consumer goods primarily used for personal, family, or household purposes. Price gouging is characterized as the unconscionable increase in sale prices that is not justified by factors such as inflation or market disruptions. The bill establishes that any wholesale dealer found to be engaging in this practice will be committing an unlawful act under the state's consumer fraud law, which carries penalties including fines of up to $10,000 for first offenses and $20,000 for subsequent offenses.

Additionally, the bill empowers the Director of the Division of Consumer Affairs to adopt necessary rules and regulations to enforce its provisions. The intent behind this legislation is to protect small businesses from unfair pricing practices by wholesale dealers, ensuring that they are not subjected to exorbitant prices for essential goods. The bill is set to take effect seven months after its enactment, allowing for any necessary administrative preparations to be made in advance.