New Jersey Bans Dynamic Pricing Using Consumer Data
Governor Mikie Sherrill signed New Jersey's Fair Price Protection Act, which prohibits businesses from using consumer data to set individualized prices. The law also imposes a one-year moratorium on the new use of electronic shelf labels (ESLs), though it does not affect loyalty program pricing or discounts for broad groups like teachers and veterans. The legislation has drawn mixed reactions; while tech industry groups criticized its potential impact on promotions, labor unions supported it as consumer protection. The law aims to prevent 'surveillance pricing' practices that set prices based on individual characteristics without shoppers’ knowledge. A newly created New Jersey Innovation Authority will study the impacts of ESL technology during the moratorium period. The bill is part of a broader trend in states like Maryland, where similar legislation has been enacted due to concerns over predatory pricing tactics.
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Topics: dynamic pricing electronic shelf labels (ESLs) retail regulation