NJ bill to fight AI-powered grocery pricing
By: Manahil Ahmed
NorthJersey.com
USA Today Network - New Jersey
..... New Jersey lawmakers have approved legislation that would prohibit grocery stores and third-party grocery delivery platforms from using artificial intelligence and consumer surveillance data to charge shoppers different prices for the same products.
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The measure, known as the Fair Price Protection Act (A-4085/S-3612), was approved by both chambers of the Legislative after being amended by budget committees on June 28. [2026] The bill now heads to Governor Mike Sherill's desk for consideration.
..... Under the bill, retailers would be prohibited form varying the prices of groceries and household essentials based on consumers' personal data. Violations would constitute unlawful practices under New Jersey's Consumer Fraud Act and could be enforced by state attorney general.
..... The legislation defines dynamic pricing as the use of algorithms or artificial intelligence that adjust prices in near reel time. it also bans surveillance pricing, in which business use information gathered through technologies such as cameras, sensors, drive tracking biometric monitoring to customize prices for individual consumers or groups of shoppers.
..... The bill further prohibits personalized algorithmic pricing that uses consumer data linked to a specific person or electronic device to determine individualized prices.
..... The bill does not prohibit all price differences. Retailers would be allowed to offer discount based on legitimate business costs, publicly disclosed promotions programs for groups such as veterans or teachers, and voluntary customer loyalty programs that meet transparency requirements.
..... The legislation also establishes a one-year moratorium on the new use of electronic shelf labels throughout New Jersey. Existents electronic shelf labels may continue operating, and retailers may replace or repair existing systems during the moratorium.
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The restrictions would apply to a broad range of products sold in grocery stores, including meat, dairy, produce, seafood, beverages, froze foods, snacks, household cleaning supplies, paper products, health and beauty items, pet food and other grocery goods.
..... The measure exempts restaurants and other establishments that primarily prepare food or beverage for immediate consumptions.
NJ supermarket industry reacts
..... The New Jersey Food Council, which represents the state's supermarket industry, criticized the legislation, arguing that it could eliminate personalized discounts that many consumers rely on.
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"Shoppers will feel the pinch of newly passed legislation that doesn't make grocery prices fairer; it just makes them higher in New Jersey," the organization said in a statement.
..... If signed into law, the measure would take effect on the first day of the seventh, moth following enactment, giving state regulators time to develop rules for implementation.
..... The council said it supports efforts to prohibit hidden price increases based on consumer data but argued lawmakers failed to distinguish between surveillance pricing and voluntary loyalty programs that offer personalized coupons.
..... According to the organization, families, seniors students and shoppers on fixed incomes could lost access to discounts hat help reduce grocery bills. the council also said that New Jersey already has consumer protection laws governing price gouging, advertising and unit pricing.
..... If signed into law, most provisions of the Fair Price Protection act would take effect 13 months after enactment. The moratorium on new electronic shelf labels would begin seven months after enactment, while the study by the new Jersey Innovation Authority would begin immediately.