New Jersey governor Mikie Sherrill recently signed a new law prohibiting businesses from using shoppers’ personal information to charge different prices for identical products, making her state the third in the US to ban the practice.
The Fair Price Protection Act passed by New Jersey’s legislature seeks to protect consumers from surveillance pricing, in which retailers can use data including online activity, location and purchasing history to arbitrarily change prices for individual shoppers.
“New Jersey families are already feeling the pressure of higher costs,” Sherrill said in a statement after signing the law. “The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product.
“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.”
New Jersey’s Fair Price Protection Act follows similar measures in Maryland and Connecticut, which have both banned surveillance pricing. Meanwhile, a similar bill awaiting a signature from Governor Kathy Hochul in New York would ban personalized price manipulation.
According to Sherrill’s office, the law prohibits businesses from using shoppers’ personal data to set individualized prices on groceries and other essential items. It does not, however, apply to loyalty programs or other discounts.
Sherrill’s office added that the law also pauses the rollout of new electronic shelf labels for one year while the New Jersey Innovation Authority studies their impact. Stores could continue using, repairing and replacing existing electronic shelf labels.
Hailing the pause on electronic shelf labels, Ademola Oyefeso, vice-president of the labor union United Food and Commercial Workers International, said: “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.”
She 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”.
