New Jersey bans companies from using personal data for price discrimination

New Jersey has taken a significant step to bolster consumer protection by enacting a law that bans "price gouging through surveillance." This practice allows companies to leverage personal data to charge varying prices for identical products, a system the new law aims to dismantle.

Governor Mikie Sherrill signed the legislation, making New Jersey the third state in the U.S. to prohibit this practice, following Maryland and Connecticut. New York is also considering similar legislation. The "Fair Pricing Protection Act" specifically targets the use of personal information, such as internet activity, customer location, and purchase history, to set customized prices without consumer knowledge.

According to the governor's office, the ban applies to essential items like groceries. However, it does not affect loyalty programs or standard discounts, ensuring that benefits associated with memberships or promotions remain in place. Governor Sherrill emphasized that with rising living costs, consumers should not face additional burdens from companies secretly using their private data to charge more.

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New Jersey families are already feeling the pressure of higher prices. The last thing they need is for companies to use their personal data in secret to charge them more than someone else for the same item.

"New Jersey families are already feeling the pressure of higher prices. The last thing they need is for companies to use their personal data in secret to charge them more than someone else for the same item," Sherrill stated in a release. "If companies want to compete, they should do so by offering better prices, not by finding new ways to squeeze consumers. This law prioritizes New Jersey shoppers by protecting their privacy and ensuring fair prices."

The law also imposes a one-year moratorium on the implementation of new electronic shelf labels, allowing the New Jersey Innovation Authority to assess the technology's impact before any wider rollout. Existing electronic labels can continue to be used, repaired, or replaced.

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If companies want to compete, they should do so by offering better prices, not by finding new ways to squeeze consumers. This law prioritizes New Jersey shoppers by protecting their privacy and ensuring fair prices.