My Information, My Price? US State New Jersey Bans Surveillance Pricing

New Jersey is taking a stand against personalized pricing tactics, enacting a law that prohibits companies from charging different prices for the same products based on a consumer's personal data. Governor Phil Murphy signed the "Fair Price Protection Act" on April 23, making New Jersey the third U.S. state to regulate such discriminatory pricing, following Maryland and Connecticut.

The legislation targets what is known as "surveillance pricing," where algorithms analyze a shopper's online behavior, location, purchase history, and even inferred data from sensors or devices to determine their willingness to pay. This practice applies to a wide range of goods, including groceries like dairy, meat, and beverages, as well as household cleaning supplies and pet products. However, it excludes immediate consumption items sold at food establishments.

While the core provision against personalized pricing takes effect in August 2027, the law carves out exceptions. It allows for legitimate discounts based on supply costs or loyalty programs that are transparent and offer the same terms to all members. Price differences for specific groups like teachers or veterans, based on publicly verifiable criteria, are also permitted.

Governor Murphy emphasized that businesses should compete by offering better prices rather than exploiting consumers. "Companies should find new ways to compete by offering better prices, not by finding new ways to rip off consumers," he stated. The law aims to safeguard personal information and ensure price fairness. Violators will face legal action, including injunctions and restitution for affected consumers, as determined by the state's Attorney General.

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Companies should find new ways to compete by offering better prices, not by finding new ways to rip off consumers.