New Jersey Bans Surveillance Pricing and Freezes Digital Shelf Labels

This new law in New Jersey directly impacts how you display prices and manage promotions at the point of sale. If you use electronic shelf labels or dynamic pricing algorithms, you need to review your strategy immediately. New Jersey has banned 'surveillance pricing,' which is the practice of using personal customer data to change prices for specific shoppers. This means you cannot charge someone more for a product or a financing contract simply because your software thinks they are willing to pay a premium based on their browsing history or location. Additionally, the state has placed a one-year freeze on the installation of new digital shelf labels. For retailers, this pauses the ability to automate price updates instantly across the showroom floor. The goal of the legislation is to prevent 'surge pricing' in retail environments and ensure transparency. If you operate in New Jersey, you must ensure your pricing is consistent for all customers. Your financing offers and monthly payment displays must also remain stable and not fluctuate based on individual tracking data. This regulation could set a precedent for other states, so even operators outside of New Jersey should watch this closely. Compliance will require a shift back to transparent, static pricing models while the state evaluates the long-term impact of retail technology.

Source: PYMNTS

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