New Jersey Bans Surveillance Pricing and Freezes Digital Shelf Labels

Surveillance pricing is now banned in New Jersey, and new electronic shelf labels are under a one-year moratorium. New Jersey Gov. Mikie Sherrill signed the Fair Price Protection Act into law, saying it will protect the state’s shoppers from discriminatory surveillance pricing, according to a Thursday (July 23) press release from the Governor’s Office. The new law prevents businesses from using personal information to charge different shoppers different prices for identical products. The personal information includes online activity, location, purchasing history and other collected data, according to the release. The law also places a one-year moratorium on the new use of electronic shelf labels, though it does not require that stores stop using existing ones. During the one-year moratorium, the New Jersey Innovation Authority will study the impact of that technology. “If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers,” Sherrill said in the release. “This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing.” New Jersey Attorney General Jennifer Davenport said in the release: “My office is committed to enforcing this new law to ensure grocery prices are fair, transparent, consistent and not driven by the exploitation of consumers’ personal data.” The Fair Price Protection Act was sent to the governor’s desk on June 30 after being passed by the New Jersey Senate on a 22-14 vote and by the state’s Assembly on a 51-20-1 vote. One of the sponsors of the bill, Sen. Joe Cryan, said in a Thursday press release issued by the New Jersey Senate Democrats that surveillance pricing is “an abuse of modern technology” and that consumers “should be protected from the intrusive use of algorithms, personal data and other technologies to exploit their food purchases or individual characteristics.” Another sponsor of the bill, Sen. Joe Lagana, said in the release that surveillance pricing is “a modern form of consumer fraud” and that the new law “will put a stop to these deceptive practices and ensure businesses treat shoppers equally, without weaponizing their own personal data against them.” The New Jersey Assembly GOP said in a Thursday post on X that businesses pushed back on the Fair Price Protection Act because it threatens loyalty programs, discount apps and member pricing. “Grocery stores aren’t charging more money for milk, eggs and butter at 6 p.m. instead of 10 a.m.,” the post said. “They are giving you a coupon when you left something in your cart and want you to buy it. This law threatens to take that all away.” Consumer Reports said in a Thursday press release that New Jersey became the third state to enact a law that curbs personalized pricing. Maryland and Connecticut did so earlier this year. New York’s legislature passed a bill that is now waiting for the governor’s signature. It was reported in May that more than 50 bills had been introduced in 26 states to restrict or ban algorithmic price-setting.