NJ governor signs law banning surveillance pricing and delaying use of new ESLs
New Jersey Gov. Mikie Sherrill has signed legislation that bans the use of surveillance pricing.
The state’s new Fair Price Protection Act prohibits grocery stores and third-party grocery delivery platforms from using personal data to set individualized prices on groceries and other necessities. The new law, which goes into effect Aug.1, 2027, does not ban loyalty programs or discounts. (The legislation passed both houses of the legislature on June 30.)
In addition, the bill also places a one-year pause on the use of new electronic shelf labels while the state studies the impact of the technology. Stores, however, can keep using, repairing or replacing existing electronic shelf labels that are already in place.
The new law makes surveillance pricing a consumer fraud violation punishable by up to $20,000 in fines and additional civil enforcement penalties from the Attorney General’s Office.
"New Jersey families are already feeling the pressure of higher costs," said Governor Mikie Sherrill. "The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product. If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers. This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing."
With the signing of the bill, New Jersey has become the third state to ban grocery surveillance pricing, following Maryland and Connecticut. Similar legislation has passed in New York, where it is under review by Gov. Kathy Hochul.
Other states considering surveillance pricing bans include, among others, California and Illinois.
The bill and similar ones like it have received pushback in the business community.
“In the end, this law will compromise the very cost-saving programs that consumers rely on, particularly during an affordability crisis,” stated New Jersey Business & Industry Association president and CEO Michele Siekerka. “The unintended consequences could very well be the elimination of some loyalty programs, coupons, and other customer-specific discounts due to new limits on consumer data.”
