New Jersey Becomes Latest State to Pass Law Against Surveillance Pricing

Key Points:

• New Jersey has passed the Fair Price Protection Act, a bipartisan law banning surveillance pricing and the use of AI or algorithms to set different prices for the same grocery items, pending Governor Mikie Sherrill’s signature.
• The law also imposes a one-year moratorium on electronic shelf labels (ESLs), technology that retailers like Walmart are deploying nationwide, amid consumer concerns about rapid, centralized price changes.
• Surveillance pricing, which uses personal data to charge customers differently, has become a contentious issue as inflation outpaces wage growth, prompting at least a dozen states to consider similar legislation.
• The bill includes exemptions for loyalty programs and discounts for seniors and military personnel, requiring these to be clearly disclosed and uniformly applied, a provision praised by consumer advocacy groups.
• While New Jersey joins Maryland and Connecticut in banning surveillance pricing at grocery stores, other states like New York have passed notification laws or pending bans, and opposition remains bipartisan, with concerns about potentially limiting beneficial price reductions.