New Jersey Bans AI-Powered Surveillance Pricing
New Jersey has become the third state to prohibit real-time pricing that uses consumer data to tailor grocery prices for individual shoppers. The law aims to protect consumers and ensure pricing fairness.
New Jersey banned AI-powered surveillance pricing on Friday, a practice that utilizes consumer personal data to set individualized prices in grocery stores.
Governor Mikie Sherrill signed the Fair Price Protection Act, which prohibits grocery stores and third-party delivery apps from using data such as location, cart contents, browsing history, and past purchases to alter prices in real-time. The law enables two different customers to be charged different prices for the exact same product without their knowledge.
New Jersey is now the third state to outlaw this controversial practice. At least 20 other states are considering similar legislation.
Consumer investigations have previously revealed that identical grocery staples could vary in price by as much as 23 percent between shoppers on a single delivery platform. The legislative change aims to protect consumers and ensure fair pricing.