TRENTON – Acting to protect consumers from the predatory use of surveillance pricing, a Senate committee today approved legislation sponsored by Senator Joe Cryan and Senator Joe Lagana that would prohibit the use of technology-cultivated personal data from consumers to set individual prices for grocery purchases and other food products.

The bill, S-3612/S-3717, entitled the “Fair Price Protection Act,” would ban surveillance pricing, where the shopping habits, online activity and other behavioral information are collected and used to charge different people different prices for the same food items.

“Surveillance pricing is an invasion of privacy and an abuse of modern technologies,” said Senator Cryan (D-Union). “Groceries are basic necessities that consumers need to feed themselves and their families. Working people are already confronted with increased grocery costs that are difficult to afford. They should be protected from the intrusive use of artificial intelligence, algorithms, and personal data to exploit their food purchases.”

“Surveillance pricing isn’t innovation at its finest, but a modern form of consumer fraud that quietly manipulates prices based on a customer’s private online behavior,” said Senator Lagana (D-Bergen). “At a time when families are already struggling with the rising cost of basic necessities, the Fair Price Protection Act will put a stop to these deceptive practices and ensure businesses treat shoppers equally, without weaponizing their own personal data against them.”

The legislation would prevent businesses from using personalized algorithmic pricing, information collected through electronic surveillance, or any pricing strategy that determines the price of food products based on a consumer’s personal data, including biometric monitoring, genetic information, or protected class data.

The prohibitions would also apply to third-party grocery delivery platforms, preventing them from using surveillance data collected from consumers to charge different prices to different consumers for the same products.

Grocery stores would also be prevented from connecting surveillance pricing technology to electronic shelving labels that contain pricing information. They would be required to use a method that allows for a non-digital presentation of prices for groceries and other foodstuffs.

Violations of the legislation would be violations of the New Jersey Consumer Protection Act. The Direction of the Division of Consumer Affairs would adopt rules and regulations to implement the law.

The bill would 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.

The legislation was approved by the Senate Commerce Committee.