New Jersey Enacts Law Banning Surveillance Pricing

New Jersey’s legislature passed the Fair Price Protection Act, making the state the third in the United States to outlaw “surveillance pricing”—the practice of using shoppers’ online activity, location data and purchase history to set individualized prices for identical products. Earlier bans were adopted in Maryland and Connecticut, and a comparable measure is pending in New York.

The Guardian

The law prohibits retailers from employing personal data to set separate prices on groceries and other essential items. It does not extend to traditional loyalty-program discounts. In addition, the statute imposes a one-year moratorium on the rollout of new electronic shelf-label systems while the New Jersey Innovation Authority evaluates their impact; existing labels may continue to be used, repaired, or replaced.

The Guardian

The governor’s office emphasized that competition should be based on better overall prices rather than data-driven price manipulation.

The Guardian

Ademola Oyefeso, vice-president of the United Food and Commercial Workers International, welcomed the pause on electronic shelf labels, describing it as a safeguard for both shoppers and grocery-store workers. He expressed hope that the law would inspire other states to curb “predatory pricing” driven by artificial-intelligence tools.

The Guardian

Proponents argue the ban will curb hidden price discrimination and reinforce consumer privacy, potentially prompting retailers to adopt more transparent pricing models. The temporary halt on new shelf-label technology gives regulators time to assess any unintended labor or privacy effects before broader deployment. If other states follow New Jersey’s lead, the practice of individualized pricing could face a nationwide curtailment.

The Guardian

• “New Jersey families are already feeling the pressure of higher costs,” — Mikie Sherrill, new jersey governor

The Guardian