Official Site of The State of New Jersey

NEWARK – Governor Mikie Sherrill today signed the Fair Price Protection Act into law, protecting New Jersey shoppers from discriminatory surveillance pricing. The Act prevents businesses from using personal information—such as online activity, location, purchasing history, or other collected data—to charge different prices for identical products based on what an algorithm predicts a shopper is willing or able to pay.  

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

“I thank Governor Sherrill and the Legislature for taking this important step towards making groceries more affordable, protecting the data privacy of New Jersey consumers, and ensuring a fair marketplace for household essentials,” said Attorney General Jennifer Davenport. “The price New Jersey Families pay at the grocery store should be based on the cost of a product, not on what invasive data collection suggests they may be willing to pay. My office is committed to enforcing this new law to ensure grocery prices are fair, transparent, consistent, and not driven by the exploitation of consumers’ personal data.” 

Surveillance pricing uses consumer data to set prices for individual shoppers, often by using large-scale data collection efforts and artificial intelligence. While companies have long adjusted prices based on market conditions, surveillance pricing allows retailers to tailor prices based on surveilling the characteristics of individual shoppers, often without their knowledge.  

The Fair Price Protection Act prohibits retailers from using personal data to set individualized prices on groceries and other necessities for New Jersey shoppers but does not ban loyalty programs or discounts. The bill also places a one-year moratorium on the new use of electronic shelf labels while the New JerseyInnovation Authority studies the effects and impact of that technology. The bill does not require that stores stop using, repairing, or replacing existing electronic shelf labels.  

“Surveillance pricing is an abuse of modern technology where artificial intelligence is used to set different prices for different customers,” said Senator Joe Cryan (D-Union). “Consumers are being hurt at a time when families are already struggling to pay their bills. They should be protected from the intrusive use of algorithms, personal data and other technologies to exploit their food purchases or individual characteristics.” 

“Consumers should not have to wonder whether the price they see is the same price someone else is paying for the exact same product,” said Assemblyman Onyema (D-Essex, Union). “As technology becomes more sophisticated, so do the ways companies can use personal information to influence what people pay. This bill will establish clear protections to ensure that pricing is based on the product being sold, not on the data collected about the person buying it. Fairness, transparency, and privacy should not disappear simply because a transaction happens online or through an app.” 

“We applaud the Governor for signing this important legislation to prevent surveillance pricing,” said Damon King, Senior Counsel in the Economic Justice Program at the New Jersey Institute for Social Justice. “At a time when many New Jerseyans are struggling to make ends meet, surveillance pricing has the potential to exacerbate economic strain — especially for low-income and communities of color who are already struggling more than others and are less able to adjust to price increases. This legislation is a proactive step to prevent unpredictable and potentially exploitative surveillance pricing practices, and to protect New Jerseyans when they buy food for their families." 

“By signing the Fair Price Protection Act into law, Governor Sherrill has declared that surveillance pricing has no place in New Jersey,” said Ademola Oyefeso, UFCW International Vice President. “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. As large grocery chains across the country rush to outfit their stores with this technology, we commend New Jersey lawmakers for their leadership on this issue. We hope this law will serve as a catalyst for states across the country to shield shoppers from AI-driven predatory pricing and protect good, union grocery jobs.” 

The Fair Price Protection Act complements Governor Sherrill’s recent actions on junk fees and algorithmic rent-setting. The law establishes clear guardrails for emerging technologies while protecting shoppers from discriminatory pricing practices based on their personal information.  

What They’re Saying 

“Surveillance pricing isn’t innovation at its finest, but a modern form of consumer fraud that quietly manipulates prices based on a customer’s private online behavior,” said Senator Joe Lagana (D-Bergen). “At a time when families are already struggling with the rising cost of basic necessities, the Fair Price Protection Act will put a stop to these deceptive practices and ensure businesses treat shoppers equally, without weaponizing their own personal data against them.” 

“Families deserve a consumer experience where everyone is treated fairly, not one where the price they pay is determined by personal data collected about them,” said Senator Burgess. (D-Essex/Union). “As the cost of everyday essentials continues to rise, no one should be discriminated against through hidden pricing practices. This law will help ensure consumers pay for the value of the product, not for what companies know about their spending habits." 

“Most people have no idea how much information is being collected about them every day, or how that information can be used,” said Assemblywoman Quijano (D-Union). “Consumers should not worry that every click, search, purchase, or trip to the store is tracked and analyzed to determine how much they will pay. New Jersey families deserve the confidence of knowing their personal information is not being used against them at the checkout counter.” 

“Families are already feeling the strain of rising costs,” said Assemblyman Sampson (D-Hudson). “The last thing consumers need is an algorithm deciding they should pay more simply because of their shopping habits or online activity. With this bill, New Jersey is standing on the side of fairness.” 

“The same product should come with the same price tag regardless of a person’s background, neighborhood, or digital footprint,” said Assemblywoman Speight (D-Essex, Hudson). “No family should pay more for essential goods because an algorithm determines the price. This law protects consumers, particularly vulnerable populations, from predatory pricing practices and uphold fairness and equal treatment in the marketplace.” 

“New Jerseyans should be able to shop without feeling like every click, search, or purchase is being monitored and monetized,” said Assemblywoman Bagolie (D-Essex, Passaic). "This legislation draws a clear line between legitimate business practices and the misuse of personal data." 

“Many consumers, especially older adults, don’t realize just how much of their personal information is collected and analyzed every day,” said Assemblywoman Cleopatra Tucker (D-Essex, Union). “They shouldn’t have to worry that their data is being used to quietly charge them more. This bill helps ensure fairness and transparency for every New Jersey shopper.” 

I have another from Assemblyman Bailey: “Consumers deserve transparency about how their information is collected and confidence that it is not being used to manipulate prices,” said Assemblyman Bailey (D-Gloucester, Salem, Cumberland). “If businesses are using personal data to influence prices, people deserve to know about it and have protections against it.” 

“Surveillance-based pricing is a threat to marketplace fairness, consumer privacy, and affordability. At a time when families across New Jersey are struggling to make ends meet, the idea that the price of something as essential as groceries could be manipulated, often based on information that isn't even reliable, just to maximize profits, is unacceptable,” said New Jersey Citizen Action Executive Director Dena Mottola Jaborska. “The Fair Price Protection Act restores a basic principle of consumer fairness. We applaud the legislature for passing this bill to protect consumers from technology that can be used to exploit them because of their needs, preferences, and vulnerabilities and we applaud Governor Mikie Sherrill for signing another consumer protection bill into law, which prohibits surveillance-based pricing for groceries, keeps pricing criteria transparent and consistent for everyone, and is essential to her campaign to advance a meaningful affordability agenda." 

"Every day, we see families forced to make impossible choices between paying for groceries, rent, utilities, and other basic necessities,” said Robin Peacock, Executive Director, MEND. “The Fair Price Protection Act is an important step toward ensuring a marketplace that is more transparent, fair, and respectful of every New Jersey resident. We are grateful to Governor Mikie Sherrill and the New Jersey Legislature for their leadership in advancing this legislation and for recognizing that consumer protections are an essential part of supporting families facing rising costs. At MEND, we're proud to support policies that promote fairness, dignity, and greater economic security for all."