PHILADELPHIA (KYW Newsradio) — New Jersey has officially banned what’s known as surveillance pricing. No longer will companies be allowed to use data-tracking technology to change prices based on individual consumers’ habits.
Gov. Mikie Sherrill signed the Fair Price Protection Act into law on Thursday. It prevents businesses from using personal information — online activity, location, purchasing history — to charge different prices for the same products based on what an algorithm predicts a shopper may buy.
Sherrill cited a Consumer Reports study that found one app charged different shoppers up to 20% more for basic products like peanut butter or turkey. The study also found families could be spending an additional $1,200 or more every year because of surveillance pricing.
“Surveillance pricing weaponizes your data against you. Companies figure out where you live, where you shop, and even what you’re Googling,” she said, which they use to figure out how much someone will spend on eggs or other everyday items.
“Surveillance pricing essentially gives Big Brother a look into your shopping cart. It’s incredibly invasive, and it’s expensive.”
The legislation doesn’t stop retailers from offering sales or coupons; it’s only meant to end predatory pricing.
New Jersey is also taking a year to study digital price tags on store shelves to see if dynamic digital pricing is extracting extra cash from consumers.
The data-tracking technology changes prices based on buying habits.
The data-tracking technology changes prices based on buying habits.
