New Jersey has joined a small but growing list of states moving to ban retailers from using personal data to charge individual customers different prices for the same product. Governor Mikie Sherrill signed the Fair Price Protection Act into law, making New Jersey the third state to prohibit the controversial practice known as surveillance pricing.
The law targets a retail strategy in which companies harvest information about shoppers' online habits, location data, and purchase history to dynamically adjust prices on an individual basis. Sherrill framed the measure as essential consumer protection in a state already burdened by rising costs.
"If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers," Sherrill said in a statement. "This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing."
Maryland and Connecticut have already enacted similar bans. A comparable bill awaits Governor Kathy Hochul's signature in New York, which would restrict personalized price manipulation in that state as well.
The New Jersey law specifically prohibits using personal data to set individualized prices on groceries and other essential items. It carves out exceptions for loyalty programs and other discount mechanisms, meaning retailers can still offer special deals through traditional promotional channels.
The legislation also includes a one-year moratorium on new electronic shelf label technology while the New Jersey Innovation Authority evaluates potential harms. Existing shelf labels can remain in use, be repaired, or be replaced under the provision.
Labor advocates backed the electronic shelf label pause. Ademola Oyefeso, vice-president of the United Food and Commercial Workers International, called the moratorium "an important step to ensure this technology does not harm New Jersey shoppers or workers," and urged other states to adopt similar protections against what she termed AI-driven predatory pricing.
Author James Rodriguez: "Surveillance pricing is the kind of invisible rip-off that erodes consumer trust, and New Jersey's move shows the political will finally exists to stop it."
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