56 • September | October 2026 • abasto.com New Jersey Bans Surveillance Pricing in Supermarkets BY HERNANDO RAMÍREZ-SANTOS G overnor Mikie Sherrill signed the Fair Price Protection Act, which makes surveillance pricing illegal in New Jersey super- markets. At a press conference, the gover- nor presented the law as a direct res- ponse to rising food costs in the state. The new law prohibits retailers from using a customer’s personal data—such as their browsing his- tory, location, or past purchases—to charge them a different price than another consumer pays for the same product. Its proponents describe it as one of the strictest consumer protec- tion laws in the country on this issue. What the New Law Establishes Dynamic pricing relies on algorithms that predict how much each sho- pper is willing to pay and set prices accordingly. Retailers have always adjusted prices according to market conditions. This practice goes fur- ther: it targets the individual, not the moment of purchase. “New Jersey families are already feeling the pressure of higher costs,” Sherrill said. “The last thing they need is for companies to secretly use their personal data to charge them more than someone else for the same product.” The law does not affect loyalty pro- grams or standard discounts. Super- markets will still be able to reward their frequent customers and offer promotions. What they will not be able to do, starting in 2027, is use personal data to quietly set a higher base price for anyone the algorithm identifies as a buyer willing to pay more. The law also includes a one-year moratorium on the installation of new electronic price tags. During that period, the New Jersey Innova- tion Authority will study the impact of this technology on consumers before regulators decide whether to allow its expansion. For her part, Attorney General Jennifer Davenport pledged to en- The state becomes the third in the country to ban the practice of raising prices based on personal data. force the new law. “The price New Jersey families pay at the grocery sto- re should be based on the cost of the product, not on what an invasive data collection suggests they’re willing to pay,” Davenport stated. The NGA Warned Sherrill Before the Signing The bill did not reach Sherrill’s desk without some friction. Abasto repor- ted on its website that the National Supermarket Association lobbied for last-minute changes. It warned the governor that such a broad ban could affect loyalty programs and other dis- counts that consumers actually want. Independent supermarkets argued that the text needed adjustments be- fore becoming law. Unions pushed in the opposite di- rection. UFCW International Vice President Ademola Oyefeso celebra- ted the signing and described the moratorium on electronic price tags as a necessary check on a technology that, he said, supermarket chains are rushing to install across the country. Senator Joe Cryan, one of the bi- ll’s sponsors, agreed on the urgency and described surveillance pricing as an exploitation of “intrusive” algori- • FOOD INDUSTRY