New Jersey is among a small but growing group of states targeting surveillance pricing.
As part of a law signed July 23 by Gov. Mikie Sherrill, the state made it illegal to use any pricing strategy that determines the cost of groceries and other food products based on consumers’ personal habits, including biometric, genetic and protected class information.
The Fair Price Protection Act also bars third-party delivery platforms from using consumer surveillance data to charge different prices to different shoppers for the same products, according to the bill.
However, it does 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.
Breaking the law could lead to fines as high as $50,000. Offenders could also incur Consumer Fraud Act violations of up to $10,000 for a first offense and up to $20,000 for any subsequent offense, the legislation says.
Additionally, the bill establishes a one-year moratorium on the installation of new electronic shelving labels. Businesses that already use ESLs are allowed to continue their use. The state will conduct a study to determine the ESL’s impact on surveillance pricing and if they are compliant with the Consumer Fraud Act.
Read full news story here.