New Jersey bans grocery surveillance pricing; pauses electronic shelf labels
New Jersey is on the cusp of becoming the third state in the country to pass a law to curb personalized (surveillance) pricing.
The New Jersey Legislature has passed the "Fair Price Protection Act,” which prohibits grocery stores and third-party grocery delivery platforms from using artificial intelligence and consumer surveillance data to charge shoppers different prices for the same products. The bill also places a moratorium on the use of electronic shelf labels in the state’s grocery stores.
The measure is now on the desk of Gov. Mikie Sherrill. She is expected to sign the bill into law.
In June, Maryland and Connecticut signed legislation aimed at banning the practice. The New York legislation also passed a bill, which is awaiting Gov. Hochul’s signature. Other states considering surveillance pricing bans include, among others, California and Illinois.
[READ MORE: Maryland’s surveillance pricing ban signals new era for AI-driven grocery pricing]
“No consumer should have to pay more for groceries because a company knows what they’re searching for online, what their income is, the makeup of their household, or where they go,” said Grace Gedye, senior policy analyst at advocacy group Consumer Reports (CR), which has helped champion efforts to restrict the use of data linked to individual shoppers to set prices. “We applaud the New Jersey Legislature for taking up this affordability issue, however, this bill includes some loopholes that we encourage the legislature to revisit and improve upon during the next session.”
CR’s recommendations for closing the loopholes include requiring clear, specific and public disclosures of loyalty program discounts and price benefits, along with the accompanying criteria and conditions for receiving the discount. Other recommendations include making it clear that consumers can take legal action if their rights under the law are violated, rather than petitioning the Attorney General— whose resources are limited—to act on their behalf.