Governor Mikie Sherrill today signed the Fair Price Protection Act into law, establishing protections for New Jersey shoppers against discriminatory surveillance pricing practices. The new legislation prohibits businesses from utilizing personal information, such as online activity, location data, or purchasing history, to charge varying prices for identical products based on algorithmic predictions of a shopper's willingness or ability 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. She emphasized that businesses should compete by offering better prices, not by exploiting personal data. Attorney General Jennifer Davenport added, "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."
Surveillance pricing leverages large-scale data collection and artificial intelligence to tailor prices for individual shoppers, often without their knowledge, differing from traditional market-based price adjustments. The Fair Price Protection Act specifically targets this practice for groceries and other necessities, while explicitly allowing loyalty programs and discounts.
Additionally, the bill introduces a one-year moratorium on the new deployment of electronic shelf labels, pending a study by the New Jersey Innovation Authority on their effects and impact. Existing electronic shelf labels are not affected by this moratorium. Senator Joe Cryan highlighted that "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."
Damon King, Senior Counsel at the New Jersey Institute for Social Justice, applauded the legislation, noting its potential to prevent economic strain, particularly for low-income communities. Ademola Oyefeso, UFCW International Vice President, praised New Jersey's leadership, expressing hope that the law will inspire other states to protect shoppers from AI-driven predatory pricing and safeguard grocery jobs. This Act complements Governor Sherrill's broader efforts against junk fees and algorithmic rent-setting, setting clear boundaries for emerging technologies and promoting fairness in the marketplace.