New Jersey bans surveillance pricing
New Jersey Governor Mikie Sherrill signed the Fair Price Protection Act into law on Thursday, prohibiting businesses from using shoppers' personal information to charge different prices for identical products. The move makes New Jersey the third US state to ban the practice, following Maryland and Connecticut.
The law aims to protect consumers from surveillance pricing, where retailers use data such as online activity, location, and purchasing history to set individualized prices. It covers groceries and other essential items but does not apply to loyalty programs or other discounts.
Statement from the governor
"New Jersey families are already feeling the pressure of higher costs," Sherrill said in a statement. "The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product."
She added: "If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers. This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing."
Electronic shelf labels pause
The law also pauses the rollout of new electronic shelf labels for one year while the New Jersey Innovation Authority studies their impact. Stores may continue using, repairing, and replacing existing electronic shelf labels.
Ademola Oyefeso, vice-president of the labor union United Food and Commercial Workers International, welcomed the pause. "The law's moratorium on the use of electronic shelf labels is an important step to ensure this technology does not harm New Jersey shoppers or workers," Oyefeso said.
Oyefeso added: "We hope this law will serve as a catalyst for states across the country to shield shoppers from … predatory pricing set by artificial intelligence and protect good, union grocery jobs."
Similar measures elsewhere
A similar bill in New York, which would ban personalized price manipulation, awaits a signature from Governor Kathy Hochul.
