New Jersey becomes one of the first states to ban dynamic pricing

Price check on The Garden State.New Jersey has officially become the first state to place a one-year moratorium on electronic shelf labels, also known as ESLs, as Gov.Mikie Sherrill signed into law the Fair Price Protection Act.

The newly signed bill bans surveillance pricing — where businesses have the ability to adjust their prices in real-time with digital tags based on consumer data. The bill means gone are the days that New Jersey retailers may factor in a shopper’s online activity, location, purchasing history or other collected data when setting prices.“New Jersey families are already feeling the pressure of higher costs.The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product,” said Governor Mikie Sherrill in a press release. “If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers.

This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing,” she added.   While the law focuses on dynamic pricing, lawmakers etched out the temporary pause on ESLs while the New Jersey Innovation Authority studies the technology.However, the bill does not force retailers to stop using, repairing or replacing any existing ESLs.The temporary suspension of ESLs will only impact retailers in the state who have not yet added the technology to stores.Gov.

Sherrill also said that the new law will not ban loyalty programs or discounts.The bill will officially come into force on February 1, 2027.

Big retailers like Kroger or Walmart have been adding ESLs as companies claim they help reduce paper and save the company hours of labor, and free up workers to help shoppers with other tasks.But shoppers fear the digital-style price tags are a potential cash grab as they claim prices sitting on store shelves can change in just seconds.Lawmakers have been chiming in, as senators also recogn...