New Jersey Bans Grocery Stores From Using Shoppers’ Personal Data To Set Prices

Governor Mikie Sherrill of New Jersey has signed into law the “Fair Price Protection Act,” making the state one of the first in the nation to ban surveillance pricing — the practice of using shoppers’ personal data to charge them individualized prices.The law prohibits grocery stores from using a customer’s digital history, biometric information, location data, or purchasing habits to set prices based on what an algorithm estimates they are willing to pay. It takes effect August 1, 2027, and gives both the state attorney general and individual consumers the right to sue businesses that violate the ban. Penalties include fines of up to $10,000 for a first offense and $20,000 for repeat violations, along with potential permit revocation and mandatory refunds.“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,” the governor said in a statement. “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.” The law does not prohibit traditional “dynamic pricing” — where prices fluctuate based on overall demand — nor does it affect loyalty programs or promotional discounts. It does, however, place a one-year moratorium on the new deployment of electronic shelf labels, the digital price displays that can update instantly. The New Jersey Innovation Authority will study whether the technology could facilitate unfair pricing before the pause lifts.Supporters argue the law is long overdue. Attorney General Jennifer Davenport said her office is committed to enforcing the new legislation. “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,” she said. Advocates for low-income communities also backed the measure. “Surveillance pricing has the potential to exacerbate economic strain — especially for low-income and communities of color who are already struggling more than others,” said the senior counsel in the Economic Justice Program at the New Jersey Institute for Social Justice, Damon King.Not everyone welcomed the legislation. The president and CEO of the New Jersey Business & Industry Association, Michele Siekerka, warned of unintended consequences.“In the end, this law will compromise the very cost-saving programs that consumers rely on, particularly during an affordability crisis,” she said, according to the Jersey Vindicator. “The unintended consequences could very well be the elimination of some loyalty programs, coupons, and other customer-specific discounts due to new limits on consumer data.”The concern is not unique to New Jersey. Senators Elizabeth Warren of Massachusetts and Bob Casey of Pennsylvania have previously raised alarms about Kroger’s AI-driven pricing model, which the grocery giant developed in partnership with Microsoft. The senators warned it could enable stores to build detailed customer profiles and display the “maximum willingness to pay” on digital price tags. Kroger denied the characterization, saying its pricing strategy is designed to lower costs for customers over time.New Jersey joins Maryland and Connecticut in banning the practice. Similar legislation is pending in New York, under consideration in California, and was vetoed in Colorado in June 2026.

New Jersey Bans Grocery Stores From Using Shoppers’ Personal Data To Set Prices

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