Governor Mikie Sherrill today signed the Fair Price Protection Act into law, protecting New Jersey shoppers from discriminatory surveillance pricing. The Act prevents businesses from using personal information—such as online activity, location, purchasing history, or other collected data—to charge different prices for identical products based on what an algorithm predicts a shopper 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,” said Governor Mikie Sherrill. “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."
“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,” said Attorney General Jennifer Davenport. “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.”
Surveillance pricing uses consumer data to set prices for individual shoppers, often by using large-scale data collection efforts and artificial intelligence. While companies have long adjusted prices based on market conditions, surveillance pricing allows retailers to tailor prices based on surveilling the characteristics of individual shoppers, often without their knowledge.
The Fair Price Protection Act prohibits retailers from using personal data to set individualized prices on groceries and other necessities for New Jersey shoppers but does not ban loyalty programs or discounts. The bill also places a one-year moratorium on the new use of electronic shelf labels while the New JerseyInnovation Authority studies the effects and impact of that technology. The bill does not require that stores stop using, repairing, or replacing existing electronic shelf labels.
“Surveillance pricing is an abuse of modern technology where artificial intelligence is used to set different prices for different customers,” said Senator Joe Cryan (D-Union). “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.”
“Consumers should not have to wonder whether the price they see is the same price someone else is paying for the exact same product,” said Assemblyman Onyema (D-Essex, Union). “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.”
“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.”
The Fair Price Protection Act complements Governor Sherrill’s recent actions on junk fees and algorithmic rent-setting. The law establishes clear guardrails for emerging technologies while protecting shoppers from discriminatory pricing practices based on their personal information.
