New Jersey bans stores from using shopper data to raise prices
New Jersey is putting its foot down in the highly controversial debate over surveillance pricing. The governor has signed a law that bans stores from collecting personal data from shoppers for use in setting prices, and ultimately raising them.
New Jersey joins other states banning the practice
The garden state joins Maryland and Connecticut in prohibiting companies from collecting shopper data to drive surveillance pricing.
The state's governor, Mikie Sherrill, signed the Fair Price Protection Act into law, which bans retailers from collecting the online activity, purchasing history, and location of shoppers so the store can then change prices for individual shoppers.
“New Jersey families are already feeling the pressure of higher costs,” Sherrill said in a statement after signing the law. “The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product."
Consumers and lawmakers in other states are also taking notice
New Jersey may just be the latest to ban the practice because New York Governor Kathy Hochul also has a similar bill in front of her. It's just waiting for her signature. The NY version would ban personalized price manipulation.
“If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers. This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing," said Sherrill.
New electronic shelf labels will be paused
The New Jersey bill also pauses the rollout of new electronic shelf labels for a year. The labor union United Food and Commercial Workers International is backing the pause on these new labels.
“The law’s moratorium on the use of electronic shelf labels is an important step to ensure this technology does not harm New Jersey shoppers or workers,” said Ademola Oyefeso, vice president, United Food and Commercial Workers International.
The debate is far from over
With these issues popping up in a handful of states now, look for the debate to spill over into the rest of the country.
Source: The Guardian
