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New Jersey governor signs law banning surveillance pricing

Created at 26 Jul · 3:16 PM1 source↑ Market-relevant
IN SHORT

New Jersey Governor Mikie Sherrill signed a law prohibiting businesses from using shoppers' personal information to charge different prices for identical products. The legislation aims to protect consumers from personalized price manipulation.

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Key Numbers

one yearmoratorium on new electronic shelf labels

Who's Involved

Mikie Sherrill
New Jersey governor who signed the Fair Price Protection Act
Ademola Oyefeso
Vice-president of the labor union United Food and Commercial Workers International
New Jersey Innovation Authority
will study the impact of electronic shelf labels

↳ Why This Matters

This law aims to protect consumers from potentially discriminatory pricing practices enabled by personal data collection, promoting fairness and privacy in retail transactions. It also addresses concerns about the impact of new technologies like electronic shelf labels on shoppers and workers.

Key facts

  • New Jersey Governor Mikie Sherrill signed the Fair Price Protection Act.
  • The law bans businesses from using personal data to set individualized prices for identical products.
  • This makes New Jersey the third state to ban surveillance pricing.
  • New York is considering similar legislation.
  • The law includes a one-year pause on new electronic shelf labels pending a study.

New Jersey Governor Mikie Sherrill has signed into law the Fair Price Protection Act, which prohibits businesses from using consumers' personal data to set variable prices for the same products. This legislation makes New Jersey the third state in the U.S. to enact such a ban, following Maryland and Connecticut, with New York also considering similar measures.

The law specifically targets surveillance pricing, a practice where retailers leverage data such as online activity, location, and purchase history to adjust prices for individual shoppers. Governor Sherrill stated that the aim is to ensure fair competition based on better prices rather than data-driven price manipulation, protecting families from increased costs.

According to Sherrill's office, the act prohibits the use of personal data for setting individualized prices on groceries and essential items, though it exempts loyalty programs and other discounts. Additionally, the law imposes a one-year moratorium on the rollout of new electronic shelf labels. During this period, the New Jersey Innovation Authority will study the technology's impact. Existing electronic shelf labels may continue to be used, repaired, and replaced.

Ademola Oyefeso, vice-president of the United Food and Commercial Workers International union, praised the moratorium on electronic shelf labels, calling it a crucial step to prevent harm to shoppers and workers. Oyefeso expressed hope that this law will inspire other states to adopt similar measures against predatory pricing, particularly that driven by artificial intelligence, and to safeguard unionized grocery jobs.

Frequently asked questions

Surveillance pricing is a practice where retailers use personal data, such as online activity and purchase history, to charge individual shoppers different prices for the same product.

New Jersey, Maryland, and Connecticut have banned surveillance pricing. New York is also considering similar legislation.

No, the law prohibits using personal data for individualized pricing but does not apply to loyalty programs or other standard discounts.

The law pauses the rollout of new electronic shelf labels for one year while their impact is studied. Existing labels can still be used.

What Happens Next

01The New Jersey Innovation Authority will study the impact of electronic shelf labels.
02New York may pass similar legislation banning personalized price manipulation.

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Cadence

How It Developed

New Jersey governor signed a law banning surveillance pricing.
The law prohibits businesses from using personal data to set individualized prices.
It does not apply to loyalty programs or discounts.
The law pauses new electronic shelf labels for one year.
The New Jersey Innovation Authority will study the impact of electronic shelf labels.

Sources

T1
New Jersey governor signs law banning surveillance pricing to protect shoppersThe Guardian

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