New law aims to make groceries more affordable in New Jersey by banning surveillance pricing
NEWARK, New Jersey (WABC) -- A new bill signed into law by Gov. Mikie Sherrill on Thursday aims to make groceries more affordable by banning surveillance pricing.
Surveillance pricing is when companies use personal data to set and adjust what their customers pay at the register.
The legislation signed Thursday is one of the nation's strongest bans on the practice.
Sherrill had promised to ban the practice, calling it "outrageous." She added that the war in Iran and tariffs are also driving up food prices.
The governor said there is evidence that retailers use a shopper's online information to change electronic shelf prices and weaponize spending habits against the customer.
Officials cited examples of shoppers online paying two different prices for the same item.
The legislation, called the Fair Price Protection Act, was passed last month and was awaiting the governor's signature.
New Jersey's law is the first to include a one-year moratorium on the use of electronic shelf labels, which show prices on a digital display that critics argue allow for easier price changes.
"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," Sherrill said. "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."
Eyewitness News has reached out to the organization that represents big retailers in the state for comment. So far we have not heard back.
A growing number of Democratic-led states are opposing the practice over fears that companies will use people's personal information to gouge customers by determining the maximum amount someone is willing to pay for an item.
Connecticut and Maryland already outlaw surveillance pricing.
In New York, Gov. Kathy Hochul is currently reviewing similar legislation.
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