New Jersey Governor Mikie Sherrill signed the Fair Price Protection Act, barring retailers from quoting one shopper a different price than another on groceries and household essentials based on browsing behavior, location, or past purchases. The law takes effect August 1, 2027.
The law does not impact loyalty programs, promotional discounts, group pricing for teachers, veterans, and seniors, or any other ordinary member pricing discounts that are transparent and uniform across all customers. It specifically targets the practice of an algorithm guessing what a given customer will pay and charging accordingly. Notably, it also leaves dynamic pricing alone, so demand-based surges are untouched.
Digital shelf labels used by Walmart and other retailers got a separate one-year freeze on new installations while the state's Innovation Authority examines the technology, though stores may keep running, fixing, and swapping out units already mounted.
Penalties for retailers who violate the law could include fines of up to $10,000 for a first offense, $20,000 for subsequent violations, and the potential for cease and desist orders and additional financial damages. New Jersey is also the first state anywhere to let shoppers sue retailers directly, rather than routing everything through the attorney general.
Governor Mikie Sherrill said:
“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. 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.”
Preach it Mikie! New Jersey should next extend the law to ride-hailing, flights, and hospitality, which are riddled with surveillance pricing practices. In fact, why stop there? Surveillance pricing shouldn't be tolerated across any industry.
New Jersey isn't the first and likely won't be the last state to implement a law like this. Maryland banned surveillance pricing in April and Connecticut followed in May. New York's ban is currently sitting on Governor Hochul's desk awaiting approval, and California's law is pending in the state Senate. Roughly 24 states have introduced more than 40 bills focused on surveillance pricing, which hopefully results in compliance being too complex for companies to even want to risk the practice.
