This bill aims to prevent excessive price increases for essential off-patent and generic prescription drugs and biological products by prohibiting manufacturers and wholesale distributors from engaging in price gouging. Price gouging is defined as an unjustified and excessive increase in the price of a drug that leaves consumers with no alternative but to pay the inflated price due to the drug's importance to their health and a lack of market competition. The bill outlines specific criteria for what constitutes an essential off-patent or generic drug, including that it must be available for sale in New Jersey, have expired exclusive marketing rights, be manufactured by three or fewer companies, and be recognized as essential by health authorities.

The bill also grants the Director of the Division of Consumer Affairs the authority to notify the Attorney General of significant price increases, specifically those that exceed 50% in the wholesale acquisition cost or the price paid by state health programs within a year, and that cost more than $80 for a 30-day supply or full course of treatment. Upon notification, manufacturers must provide detailed cost information and justifications for price increases. The Attorney General can take legal action against violators, including seeking court orders to restore funds to consumers and imposing civil penalties. Additionally, any information submitted by manufacturers regarding pricing will be kept confidential unless confidentiality is waived.