New Jersey bans surveillance pricing, shielding shoppers from data-driven prices

Gov. Mikie Sherrill signed New Jersey’s Fair Price Protection Act on July 23, and the governor’s office said the measure shields grocery shoppers from surveillance pricing. The law bars retailers from using shoppers’ personal data to set individualized prices, putting New Jersey at the front of a growing fight over whether stores can tailor what people pay.

Surveillance pricing relies on browsing history, purchase behavior, device characteristics, location data, loyalty programs and other digital signals to estimate how much a particular shopper might pay. Critics say that can create a marketplace where two people see different prices for the same good or service without realizing it, especially when the purchase is for groceries, travel or financial products, where even small differences can add up fast. New Jersey reporting said the law reaches groceries and other necessities, and the governor’s office framed it as a consumer-protection step for households buying food.

The bill’s reach extends beyond a single statehouse vote. Consumer Reports testified on June 24 to the Assembly Appropriations Committee and the Senate Budget and Appropriations Committee on the Fair Price Protection Act, identified in legislative references as A4085/A4523 and S-3612/S-3717. Electronic Privacy Information Center said the New Jersey Legislature passed the measure on July 1, setting up the final sign-off from Sherrill three weeks later.

New Jersey now sits at the center of a broader national push to rein in algorithmic pricing. On May 11, House Energy and Commerce Committee Democrats opened an inquiry into surveillance pricing, saying they were concerned companies might be using Americans’ personal data to determine what prices people see and pay. Progressive Grocer described New Jersey as the first U.S. state to ban the practice and restrict electronic shelf labels in grocery stores, underscoring how closely lawmakers tied the issue to supermarket pricing and household budgets.

The new law could also reshape how retailers use loyalty programs and discounts. Business groups warned the legislation could jeopardize those offers, while the Chamber of Progress argued in June that existing law already blocked some surveillance-pricing scenarios. TechTimes said the measure gives consumers direct litigation rights, adding another layer of risk for companies that build prices from personal data rather than shelf tags or posted rates.