New Jersey has enacted a new law prohibiting businesses from employing shoppers' personal information to levy different prices for identical products. Governor Mikie Sherrill recently signed the Fair Price Protection Act, making New Jersey the third state in the United States to ban this practice, often referred to as surveillance pricing.
Surveillance pricing involves retailers utilising data such as online activity, location, and purchasing history to arbitrarily adjust prices for individual consumers. The new legislation is designed to shield consumers from this form of price manipulation, ensuring that everyone pays the same price for the same item, irrespective of their data profile. Governor Sherrill stated that New Jersey families are already grappling with higher costs, and businesses should compete by offering better prices, rather than exploiting personal data.
This move follows similar legislative action in Maryland and Connecticut, which have both previously banned surveillance pricing. Furthermore, a comparable bill is currently awaiting signature from Governor Kathy Hochul in New York, which would outlaw personalised price manipulation in that state. The growing trend across US states highlights increasing concern over consumer data privacy and fair pricing practices in the digital age.
The Fair Price Protection Act specifically prevents businesses from using personal data to set individualised prices on essential items, including groceries. However, it does not extend to loyalty programmes or other discount schemes, allowing retailers to continue offering these benefits. In a notable additional measure, the law also imposes a one-year moratorium on the deployment of new electronic shelf labels while the New Jersey Innovation Authority conducts a study into their potential impact on consumers and workers. Existing electronic shelf labels can continue to be used, repaired, and replaced.
Ademola Oyefeso, Vice-President of the United Food and Commercial Workers International labour union, welcomed the pause on electronic shelf labels, stating it was an important step to ensure the technology does not negatively affect New Jersey shoppers or workers. The union expressed hope that New Jersey's law would encourage other states to implement similar protections against what they describe as 'predatory pricing' set by artificial intelligence and to safeguard jobs in the grocery sector.