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The basics:

• Bill would ban grocery pricing based on consumers’ personal data, algorithms
• Proposal targets surveillance pricing, electronic shelf labels in stores
• Supporters call the practice invasive, deceptive amid rising grocery costs
• Business groups warn restrictions could reduce discounts, raise baseline prices

A proposal under consideration by New Jersey lawmakers to ban surveillance pricing is getting mixed feedback.

The Fair Price Protection Act would make it illegal under the state Consumer Fraud Act to use any pricing strategy that determines the cost of groceries and other food products based on consumer’s personal data, including biometric data, genetic information and protected class data.

The measure would also prohibit third-party delivery platforms from using surveillance data collected from consumers to charge different prices to different shoppers for the same products, according to the bill.

Grocery stores could not link surveillance pricing systems to digital shelf labels that change prices electronically. Instead, they would have to show food prices in a fixed, non-digital way so customers see the same clearly displayed price — rather than one that can automatically change based on data or algorithms, the bill says.

Modern ‘consumer fraud’

The measure would not prevent food stores from providing consumers with discounts from a promotional price, benefits from a loyalty program, or offering different prices to broadly defined groups, such as teachers, veterans or senior citizens.

It also permits the director of the Division of Consumer Affairs within the New Jersey Attorney General’s Office to adopt rules and regulations needed to implement the law. Additionally, the bill would allow the attorney general to file civil lawsuits against individuals or businesses accused of violating the law, seek court orders stopping unlawful conduct and compel compliance. The office could also pursue financial penalties of at least $50,000 per violation or any damages, along with any additional restitution or relief deemed appropriate by the court.

Sponsors of the Fair Price Protection Act said it’s a necessary move to “protect consumers from the predatory use of surveillance pricing.”

State Sen. Joe Cryan, D-20th District, described the strategy as “an invasion of privacy and an abuse of modern technologies.”

“Groceries are basic necessities that consumers need to feed themselves and their families. Working people are already confronted with increased grocery costs that are difficult to afford,” Cryan said. “They should be protected from the intrusive use of artificial intelligence, algorithms and personal data to exploit their food purchases.”

State Sen. Joe Lagana, D-38th District, called it “a modern form of consumer fraud that quietly manipulates prices based on a customer’s private online behavior.”

“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,” he added.

Checked out

Following a Feb. 19 introduction, the proposal was referred to the Senate Commerce Committee. That group approved the measure March 16 and sent it to the Budget and Appropriations Committee for further review.

Assembly members Rosaura Bagolie, D-27th District; Annette Quijano, D-27th District; and Chigozie Onyema, D-28th District, introduced companion legislation Feb. 19. The bill appeared before the Assembly Consumer Affairs Committee and then moved on to the Assembly Commerce and Economic Development Committee.

Surveillance pricing drew attention last year.

An investigation by Consumer Reports found that grocery delivery service Instacart used an AI-driven algorithm to charge separate customers different prices for identical products from the same store based on analysis of their personal information. In some cases, the price differences were as high as 23% for identical products, depending on the shopper and context.

After the Consumer Reports investigation, Instacart said it would stop the pricing experiment program that caused those differences. It also triggered a proposal by Democratic U.S. Sen. Ruben Gallego of Arizona that would prevent companies from using consumers’ personal data to set individualized prices. New Jersey Sen. Cory Booker and N.Y. Sen. Kirsten Gillibrand, both Democrats, co-sponsor the One Fair Price Act.

New Jersey is among a growing number of states, including California, Illinois, Colorado, Massachusetts and Vermont, looking to ban algorithmic and personalized pricing in grocery stores.

Maryland recently became the first to ban certain forms of surveillance pricing in the food retail sector. Meanwhile, New York was the first to enact a law last year. That measure requires businesses to disclose when it generates prices using personal data and algorithms.

Shoppers say no thanks

New Jersey Gov. Mikie Sherrill has taken aim at surveillance pricing. She pledged to ban the move as part of her affordability agenda.

The Democratic governor made a March appearance at a Rochelle Park pharmacy to chat about how the practice impacts prescription drug costs, calling it “creepy AF” and “sketchy.”

Surveillance pricing – the sneaky way Big Tech tracks your purchases to charge you more – is wrong. I’m working to crack down on these predatory tactics in New Jersey to protect small businesses like Invictus Pharmacy and working families. pic.twitter.com/9blKgfV4rs

— Governor Mikie Sherrill (@GovSherrillNJ) March 17, 2026

A recently released poll found that 65% of New Jerseyans favor legislation prohibiting electronic shelf labels in grocery stores. The response comes amid concerns the technology enables retailers to use personal data for predatory, instantaneous price hikes.

Six locals within the United Food and Commercial Workers and two locals in the Retail, Wholesale and Department Store Union (RWDSU) commissioned the survey. The two unions represent a combined more than 1.2 million workers across the U.S. in grocery, meatpacking, food processing, healthcare, cannabis, retail and other essential industries.

With 73% of residents already worried about high grocery bills, the majority view these pricing technologies as likely to push costs higher, according to the results. The poll found that 61% think electronic price tags and 67% believe surveillance pricing will make supermarket trips more expensive.

Sixty-seven percent said they don’t trust grocery stores to use the technology responsibly. And, 52% of respondents said they’d be less likely to shop somewhere that uses electronic shelf labels or surveillance pricing.

Additionally, participants said they believe digital price tags and surveillance pricing would lead to a range of harmful consequences for shoppers, including:

• Elevated prices during emergencies or demand spikes 84%
• Price-fixing with competitors to keep prices high 75%
• Charging higher prices to customers they think can afford to pay more 73%

By contrast, fewer than 4 in 10 think these technologies will be used to lower prices during off-peak times to save shoppers money.

The survey noted strong bipartisan support for the ban. According to the results, the majority of Democrats (73%), Independents (66%) and Republicans (55%) are in favor.

The poll of 600 registered voters across the state was conducted between April 13–17.

In a statement, the union presidents said, “This poll confirms that the majority of New Jerseyans support a ban on this technology and expect their elected officials to act. We’re proud to support the lawmakers pushing to protect consumers and workers in New Jersey.”

[T]he last thing families need is for grocery prices to rise even higher. New Jersey has a chance to get ahead of this predatory practice before it becomes common practice.
—Ademola Oyefeso, vice president, UFCW International

UFCW International Vice President Ademola Oyefeso added, “Amid persistent high inflation, the last thing families need is for grocery prices to rise even higher. New Jersey has a chance to get ahead of this predatory practice before it becomes common practice. The UFCW applauds the lawmakers who are standing up for consumers and workers against this corporate exploitation and urges them to pass this legislation before the session’s end.”

Fewer options, higher prices

While a coalition of New Jersey business groups said they don’t oppose the idea of addressing surveillance pricing, members raised concerns the proposed legislation “casts such a wide net that it could wipe out the personalized discounts, loyalty rewards and tailored promotions that Garden State shoppers count on to make ends meet.”

The group also feels the measure is written so broadly, that it could fail to protect the very tools that provide coupons for seniors, students, families and shoppers on fixed incomes.

Coalition members include:

• Chamber of Commerce Southern New Jersey
• Commerce and Industry Association of New Jersey
• Consumer Brands Association
• FMI – The Food Industry Association
• National Grocers Association
• New Jersey Business & Industry Association
• New Jersey Energy Marketers Group
• New Jersey Food Council
• New Jersey Retail Merchants Association
• New Jersey State Chamber of Commerce
• NFIB – National Federation of Independent Business

They argue that personalized pricing tools such as discounts and rewards are transparent and consumer-driven, while surveillance pricing is hidden and non-consensual. The group also warns that regulating these practices could push retailers toward a single uniform pricing model that eliminates personalization and potentially results in higher baseline prices for all consumers.

The group also pointed out the state already has several consumer protections in place, including price gouging laws, unit pricing regulations and weights & measures rules.

An essential service?

New Jersey Food Council President and CEO Linda Doherty said, “Modern pricing tools enhance the coupons, loyalty rewards, and personalized deals that millions of New Jerseyans rely on every day to stretch their household budgets. Protecting these tools truly matters for families, students, seniors, and shoppers on fixed incomes.”

Commerce and Industry Association of New Jersey President Anthony Russo said, “Today’s shoppers have built their household budgets around these custom savings tools. What has changed is the delivery. Technology has made discounts faster, smarter, and more personalized.”

New Jersey Energy Marketeers Group Executive Director Eric Blomgren added, “Restricting these pricing tools would not produce fairer outcomes for consumers — it would produce fewer options and higher prices. Without data-driven pricing, businesses lose the ability to offer products at different price points. The likely result is one price for everyone: the highest one.”

Restricting these pricing tools would not produce fairer outcomes for consumers — it would produce fewer options and higher prices.
—Eric Blomgren, executive director, New Jersey Energy Marketeers Group

Additionally, the coalition maintains that electronic shelf labels are essential.

FMI – The Food Industry Association President and CEO Leslie Sarasin said, “Electronic shelf labels help grocers deliver accurate, transparent pricing while reducing material waste and improving the shopping experience. Despite misconceptions, these systems are not used for surge pricing or to track customers—they simply ensure prices are consistent between the shelf and the point-of-sale.”

She went on to say that “preserving the ability for grocery stores to use electronic shelf labels is essential to maintaining pricing accuracy, supporting store associates and continuing to provide value to customers through markdowns in a rapidly evolving retail environment.”