New Jersey Bans Surveillance Pricing, Puts the Brakes on Electronic Shelf Labels

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A new law set to go into effect next year bars grocery stores in New Jersey from setting prices based on any given shopper’s personal data.

The Fair Price Protection Act seeks to outlaw surveillance pricing that discriminates against individual customers by using personal information like their purchasing history or online activity.

“New Jersey families are already feeling the pressure of higher costs,” Gov. Mikie Sherrill said in a statement. “The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product.”

Penalties for retailers could include fines of up to $10,000 for a first offense, $20,000 for subsequent violations and the potential for cease and desist orders and the assessment of punitive damages.

The law also includes a provision that pauses new electronic shelf labels for a year while the state studies their effect on surveillance pricing.

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