New Jersey governor signs law banning surveillance pricing to protect shoppers | New Jersey
New Jersey governor Mikie Sherrill recently signed A new law banning businesses from using shoppers’ personal information to charge different prices for the same items has made his state the third state in the United States to ban the practice.
The Fair Price Protection Act, passed by the New Jersey legislature, aims to protect consumers from surveillance pricing, where retailers can use data such as online activity, location and purchasing history to arbitrarily change prices for individual shoppers.
“New Jersey families are already feeling the pressure of higher costs,” Sherrill said in a statement after signing the bill. “The last thing they need is for companies to secretly use their personal data to charge others more for the same product.
“If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze customers. This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing.”
New Jersey’s Fair Price Protection Act follows similar measures in Maryland and Connecticut, both of which have banned surveillance pricing. Meanwhile, a similar bill is awaiting Governor Kathy Hochul’s signature in New York. Forbidden personalized price manipulation.
The law prohibits businesses from using shoppers’ personal data to set personalized prices on groceries and other essential items, according to Sherrill’s office. However, it does not apply to loyalty programs or other discounts.
Sherrill’s office added that the law also pauses the rollout of new electronic shelf labels for a year and that the New Jersey Innovation Authority is investigating their impact. Stores may continue to use, repair and replace existing electronic shelf labels.
Welcoming the pause on electronic shelf labels, Ademola Oyefeso, vice president of the United Food and Commercial Workers International union, said: in question: “The law’s moratorium on the use of electronic shelf labels is an important step to ensure that this technology does not harm shoppers or workers in New Jersey.”
He added: “We hope this legislation will serve as a catalyst for states across the country to protect shoppers from predatory AI-determined pricing and protect good, union grocery jobs.”
