Law pauses electronic shelf labels for one year
New Jersey Gov. Mikie Sherrill signed the Fair Price Protection Act into law on Thursday, prohibiting grocery stores and other retailers from using consumers’ personal data to determine or vary prices for identical food products.
The law, dubbed the Fair Price Protection Act, targets surveillance pricing, in which retailers use data including shoppers’ online activity, location, and purchasing history to set individualized prices. The measure explicitly excludes loyalty programs and other discounts from its restrictions, according to Sherrill’s office.
“New Jersey families are already feeling the pressure of higher costs,” Sherrill said in a statement after signing the law. “The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product.”
The governor added: “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.”
New Jersey became the third state in the U.S. to ban the practice, following Maryland and Connecticut, which have both enacted similar restrictions. A similar bill is awaiting a signature from New York Gov. Kathy Hochul, which would ban personalized price manipulation.
The law also imposes a one-year moratorium on the rollout of new electronic shelf labels while the New Jersey Innovation Authority studies their impact. Stores may continue using, repairing, and replacing existing electronic shelf labels.
Ademola Oyefeso, vice president of the United Food and Commercial Workers International labor union, hailed the pause. “The law’s moratorium on the use of electronic shelf labels is an important step to ensure this technology does not harm New Jersey shoppers or workers,” Oyefeso said.
Oyefeso added that the union hopes the law “will serve as a catalyst for states across the country to shield shoppers from … predatory pricing” set by artificial intelligence “and protect good, union grocery jobs.”