New Jersey becomes one of the first states to ban dynamic pricing

Key Points:

• New Jersey has enacted the Fair Price Protection Act, becoming the first state to impose a one-year moratorium on electronic shelf labels (ESLs) to ban surveillance pricing, which adjusts prices in real-time based on consumer data.
• The law prohibits retailers from using shoppers' online activity, location, or purchase history to set prices, aiming to protect consumer privacy and ensure fair pricing, with the bill taking effect on February 1, 2027.
• The moratorium applies only to retailers yet to install ESL technology, allowing current users to maintain and repair existing systems while the New Jersey Innovation Authority studies ESL impacts.
• Major retailers like Kroger and Walmart have adopted ESLs to reduce labor and paper costs, but critics and lawmakers, including Senators Warren and Casey, warn dynamic pricing could lead to unfair price surges.
• Maryland previously banned dynamic pricing in April 2026 through the Protection From Predatory Pricing Act, but Consumer Reports criticized the law for weak enforcement and limited consumer protections compared to New Jersey's approach.