Gov. Sherrill signs law banning surveillance pricing on groceries and other necessities
NEW JERSEY — Gov. Mikie Sherrill signed the Fair Price Protection Act into law Thursday, prohibiting retailers from using shoppers’ personal data to charge different prices for identical grocery items and other necessities.
The new law bars businesses from using information such as online activity, location, purchasing history and other collected data to set individualized prices based on what algorithms predict a consumer is willing or able to pay.
“New Jersey families are already feeling the pressure of higher costs. The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product,” Sherrill said. “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.”
According to the governor’s office, surveillance pricing uses consumer data and artificial intelligence to tailor prices for individual shoppers, often without their knowledge.
The law does not prohibit customer loyalty programs or discounts. It also places a one-year moratorium on the new use of electronic shelf labels while the New Jersey Innovation Authority studies the technology’s effects and impact. Existing electronic shelf labels may continue to be used, repaired or replaced.
“I thank Governor Sherrill and the Legislature for taking this important step towards making groceries more affordable, protecting the data privacy of New Jersey consumers, and ensuring a fair marketplace for household essentials,” Attorney General Jennifer Davenport said. “The price New Jersey Families pay at the grocery store should be based on the cost of a product, not on what invasive data collection suggests they may be willing to pay. 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.”
Sen. Joe Cryan, D-Union, said the legislation addresses the growing use of artificial intelligence in setting consumer prices.
“Surveillance pricing is an abuse of modern technology where artificial intelligence is used to set different prices for different customers,” Cryan said. “Consumers are being hurt at a time when families are already struggling to pay their bills. They should be protected from the intrusive use of algorithms, personal data and other technologies to exploit their food purchases or individual characteristics.”
Assemblyman Reginald Atkins Onyema, D-Essex, Union, said the law establishes protections as technology changes the retail landscape.
“Consumers should not have to wonder whether the price they see is the same price someone else is paying for the exact same product,” Onyema said. “As technology becomes more sophisticated, so do the ways companies can use personal information to influence what people pay. This bill will establish clear protections to ensure that pricing is based on the product being sold, not on the data collected about the person buying it. Fairness, transparency, and privacy should not disappear simply because a transaction happens online or through an app.”
The legislation also drew support from consumer advocates and organized labor.
“We applaud the Governor for signing this important legislation to prevent surveillance pricing,” said Damon King, senior counsel in the Economic Justice Program at the New Jersey Institute for Social Justice. “At a time when many New Jerseyans are struggling to make ends meet, surveillance pricing has the potential to exacerbate economic strain — especially for low-income and communities of color who are already struggling more than others and are less able to adjust to price increases. This legislation is a proactive step to prevent unpredictable and potentially exploitative surveillance pricing practices, and to protect New Jerseyans when they buy food for their families.”
“By signing the Fair Price Protection Act into law, Governor Sherrill has declared that surveillance pricing has no place in New Jersey,” said Ademola Oyefeso, UFCW International vice president. “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. As large grocery chains across the country rush to outfit their stores with this technology, we commend New Jersey lawmakers for their leadership on this issue. We hope this law will serve as a catalyst for states across the country to shield shoppers from AI-driven predatory pricing and protect good, union grocery jobs.”
According to the governor’s office, the Fair Price Protection Act builds on previous state actions targeting junk fees and algorithmic rent-setting while establishing new safeguards for consumers as retailers adopt emerging technologies.
