Governor Mikie Sherrill signed the Fair Price Protection Act into law on Thursday, prohibiting New Jersey retailers from using shoppers’ personal data—such as online activity, purchase history, or location—to charge different prices for identical grocery items based on algorithms predicting what customers are willing to pay. The new law also places a one-year moratorium on the new use of electronic shelf labels while the New Jersey Innovation Authority studies their potential impact. Existing electronic shelf labels may continue to be used, repaired, or replaced.

State officials said the legislation is designed to protect consumers from so-called “surveillance pricing,” which uses artificial intelligence and personal data to tailor prices to individual shoppers without their knowledge. The law does not affect grocery loyalty programs or traditional discounts. Attorney General Jennifer Davenport said her office will enforce the measure to ensure grocery prices remain fair, transparent, and based on the product itself rather than consumers’ personal information. Lawmakers and consumer advocacy groups praised the legislation, calling it a major step toward protecting privacy and preventing AI-driven pricing practices that could unfairly increase costs for New Jersey families.