NJBIA is recommending amendments to the proposed “Fair Price Protection Act” today aimed at balancing consumer protection while allowing grocery stores to responsibly leverage technology to improve efficiency, transparency, and affordability.

In written testimony to the Assembly Commerce and Economic Development Committee today, NJBIA Vice President of Government Affairs Althea D. Ford said certain changes are needed for bill A-4085.

“In its current form, this bill creates a false choice between consumer protection and operational efficiencies when both objectives can and should coexist,” Ford told the committee.

“Consumers should have confidence that the prices they see are fair, consistent, and not driven by opaque uses of their personal data. At the same time, it is critical that any statutory framework carefully distinguish between:

a. the use of technology and data voluntarily offered by consumers to engage in harmful, unfair or discriminatory pricing practices;

b. the use of technology and data voluntarily offered by consumers to customize their shopping experience and lower costs; and

c. the use of technology to communicate prices in a more timely and efficient manner.”

In her testimony, Ford recommended the following amendments to the bill:

• Establish a definition for baseline price, which recognizes the standard practice for determining price;

• Define personalized algorithmic pricing and surveillance pricing as strategies to increase prices above the baseline price using personal data; and

• Assert that the use of personalized algorithmic pricing, surveillance pricing, or any pricing strategy that increases above the baseline price, the sale price of groceries and other foodstuffs based, in whole or in part, on personal data shall be considered an unlawful practice and a violation of the New Jersey Consumer Fraud Act; and

• Establish a cure period for addressing violative actions.

“Additionally, we recommend language to clarify the conditions under which a different price could be offered, such as through loyalty programs and discounts, and to remove  references to electronic shelf labels, which are a useful tool to ensure an accurate and timely display of prices while permitting the deployment of valuable retail personnel to higher priority tasks,” Ford said.

To see Ford’s full written testimony, click here.