The Fair Price Protection Act establishes regulations to prevent retail food stores and third-party grocery delivery platforms from engaging in surveillance-based price setting, which involves charging different prices to consumers for the same or similar products based on data collected through electronic surveillance technologies. The bill defines key terms such as "bona fide discount," "consumer," and "surveillance data," and outlines exceptions where price differences are permissible, such as when based on reasonable costs or offered as discounts to specific groups or loyalty program members. It mandates that any eligibility criteria for discounts must be clearly disclosed and that surveillance data used for discounts cannot be repurposed for other marketing strategies.

Additionally, the bill prohibits the use of electronic shelving labels for displaying product prices, requiring instead a non-digital presentation of pricing information. The Attorney General is empowered to take civil action against violations of the act, which are classified as unlawful practices under the consumer fraud act, carrying penalties of up to $10,000 for first offenses and $20,000 for subsequent offenses. The act aims to enhance consumer protection and ensure fair pricing practices in the grocery sector.