A bill that would ban the use of customers’ personal data to set individualized grocery prices is now awaiting Gov. Mikie Sherrill’s signature after passing the New Jersey Legislature with bipartisan support.
The proposed Fair Price Protection Act would make it illegal for grocery stores to use shoppers’ personal information and purchasing habits to charge different prices for the same items. Lawmakers say the practice, known as “surveillance pricing,” relies on algorithms that analyze consumer behavior to determine what each shopper may be willing to pay.
The legislation would not affect traditional loyalty or rewards programs that offer discounts to customers who voluntarily sign up.
The bill also includes a temporary pause on the installation of electronic shelf labels in grocery stores while state officials study whether the technology could be used to facilitate dynamic pricing.
Supporters say the measure is intended to protect consumers from unfair pricing practices and increase transparency at the checkout. Gov. Sherrill has previously expressed concerns about surveillance pricing, although her office has not yet announced whether she will sign the bill into law.
