New Jersey is moving to crack down on a practice that critics say lets stores charge shoppers different prices based on who they are. According to News 12, a bill that would end so-called surveillance pricing at the state's grocery stores has now reached the governor's desk, arriving with bipartisan support after clearing the legislature.
The concern driving the legislation is the idea that a shopper's own data can be turned against them at the register. Consumers interviewed said they did not love the notion of being watched, with one calling it not okay, echoing worries that companies already have enough information about people's habits without using it to shape what they pay.
Advocates point to concrete research to make their case. They cited a Consumer Reports finding that Instacart customers can end up paying different prices for the same items at the same store, the result of algorithms that, supporters warn, are effectively surveilling a person's consumer choices in order to set an individualized price.
The measure was shepherded by a state lawmaker who framed it as a matter of basic fairness. State Senator Joe Cryan co-sponsored the Fair Price Protection Act to ban the practice in New Jersey grocery stores, and the bill has now advanced to the governor with backing from both parties.
The legislation is built around two main components. The first would make it illegal to price grocery store items using a customer's personal data, while explicitly protecting traditional loyalty program discounts, which supporters stressed would not be affected by the change.
The second piece takes aim at the technology that can make dynamic pricing possible. The bill would impose a pause on installing electronic shelf labels in stores, along with a study of their effects, responding to fears that digital price tags could allow the cost of an item to change depending on who is standing in front of it or as a shopper walks away.
Backers see the grocery measure as only a starting point. Cryan indicated that the plan is to ban surveillance pricing across other industries as well, such as travel sites and gas stations, arguing that more oversight of how prices are set would ultimately benefit consumers across the board.