New Jersey Enacts Fair Price Protection Act to Ban Surveillance Pricing in Grocery Stores

The bill prohibits retailers and third-party grocery-delivery platforms from using artificial intelligence, algorithms, or any personal data—including biometric, genetic, or protected-class information—to set different prices for identical grocery items. It also imposes a one-year moratorium on installing new electronic shelf labels (ESLs) while allowing existing ESLs to remain operational. Exemptions preserve broadly applied discounts for military personnel, seniors, teachers, veterans, and loyalty-program promotions.

Newsweek

Maryland adopted a similar grocery-store ban in April, followed by Connecticut in June. New York’s “One Fair Price Act” awaits Governor Kathy Hochul’s signature, and Colorado’s Democratic governor Jared Polis vetoed a comparable bill, citing concerns over loyalty-program restrictions. Nationwide, more than 50 bills have been introduced in 26 states, reflecting growing bipartisan interest in curbing surveillance pricing.

Newsweek

Republican Senator Britnee Timberlake and Democrat Senator Vincent Polistina introduced the legislation; Democrat Senator Joe Lagana co-sponsored and labeled the practice “a modern form of consumer fraud.” The Senate approved the measure 22-14; the Assembly passed it 51-20 (some reports list a 51-20-1 vote). Governor Mikie Sherrill, who previously called surveillance pricing “outrageous,” must now sign the bill.

Gizmodo

A recent poll shows 68 % of Americans worry that surveillance pricing inflates costs, and 66 % express anxiety about grocery prices. An Instacart experiment revealed up to a 25 % price increase for identical items based on shopper data. Meanwhile, wages rose 3.7 % while inflation ran at 4.2 %, tightening household budgets.

Newsweek

Proponents argue the act will shield families from data-driven price gouging and ensure equal treatment at checkout. Critics warn the ESL moratorium could hinder retailers’ ability to update prices swiftly and that restrictions on data use might curtail loyalty-program discounts, potentially affecting employment—UFCW notes ESLs reduce staffing needs.

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Governor Sherrill reiterated her support, describing the practice as “outrageous.” The United Food and Commercial Workers International Union praised the legislation as a safeguard for families. Senator Lagana called surveillance pricing “a modern form of consumer fraud.” George Slover of the Center for Democracy & Technology praised the bill’s clarity while urging broader application. Walmart, which already employs ESLs in New Jersey, denied that the technology will be used to centralize price changes.

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New Jersey Republican critics warned the law could eliminate loyalty-program benefits, stating, “Kiss your ShopRite PricePlus card good-bye.” Governor Jared Polis of Colorado argued that broad bans might punish retailers for offering lower prices, not just higher ones.

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Sources differ on the Assembly vote count—some list 51-20, others 51-20-1. Maryland’s earlier law contained enforcement loopholes, raising questions about the New Jersey bill’s enforceability. The act currently applies only to grocery stores, leaving other retail sectors unregulated.

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• “We look forward to Governor Sherrill signing this bill into law.” — United Food and Commercial Workers International Union, statement

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• “They’re written appropriately in this bill to require that they be widely disclosed, clear, and uniformly applied,” — George Slover, Senior Counsel, Center for Democracy & Technology

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• “quietly manipulates prices based on a customer's private online behavior.” — Senator Joe Lagana, Democrat, co-sponsor

Newsweek

• “Instead of specifically defining and targeting unethical conduct and practices, the bill takes a broader approach to capture any technology that incidentally influences a price or wage amount,” — Governor Jared Polis, Colorado

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• “Kiss your ShopRite PricePlus card good-bye.” — New Jersey Republican critics

Newsweek

Governor Sherrill’s pending signature will determine whether the moratorium and pricing ban take effect. Lawmakers plan a study of ESL impacts, and other states are watching New Jersey’s approach as a potential template for broader consumer-price protections.

Gizmodo