New Jersey’s Fair Price Protection Act Prohibits Surveillance Pricing for Groceries Amid Developing Regulatory Landscape

On July 23, 2026, Governor Mikie Sherrill signed into law the Fair Price Protection Act (the Act), banning the use of “surveillance pricing” for groceries and related products in New Jersey.¹ The law prohibits, with some exceptions, the use of consumers’ personal data to determine or change prices for these products.

New Jersey is the third state to enact such a ban amid growing debate about, and regulatory interest in, the use of surveillance technology and consumer data to set prices. While the Act is narrower than the bills that were first introduced—covering only groceries and related products rather than any good or service offered for sale to the public—the law in this area is rapidly developing. Businesses should continue to monitor these developments and review their consumer data policies and pricing models to ensure compliance.

Regulatory Background

In January 2025, the Federal Trade Commission (FTC) published initial findings from its surveillance pricing market study. It found that personal data, such as a person’s precise location or browser history, can be used to target individual consumers with different prices for the same products.² Interest in the issue is ongoing. On April 14, 2026, the FTC announced that it was seeking public comment to determine whether a rule is needed to prevent unfair or deceptive fee practices in connection with online food and grocery delivery services.³ In May 2026, the House Committee on Energy and Commerce, under Ranking Member Frank Pallone, Jr. (D-N.J.), launched an inquiry into corporate surveillance pricing practices.⁴ And, on August 19, 2026, the FTC announced that it was seeking public comment on its proposed enforcement policy statement on the use of personal data to set prices based on the amount that a seller believes a consumer is willing to spend.⁵ According to the proposed policy statement, the FTC intends to “enforce the law aggressively” against deceptive or unfair personalized pricing practices.⁶

Meanwhile, states have passed surveillance pricing bans. New Jersey joins Maryland⁷ and Connecticut,⁸ which earlier this year prohibited surveillance pricing for groceries and other consumer goods. A similar bill passed the New York State Legislature and awaits review by Governor Kathy Hochul.⁹ Short of banning surveillance pricing, New York State’s Algorithmic Pricing Disclosure Act went into effect on November 10, 2025 and requires non-exempt businesses to display a conspicuous statement at or near the price offered that informs consumers when the price shown to them has been set by an algorithm using their personal data. California has taken a third approach, with Attorney General Rob Bonta announcing a surveillance pricing sweep in January 2026 focused on potential violations of the California Consumer Privacy Act, with initial attention to the grocery, travel, and retail sectors.¹⁰

As first introduced, the bills that ultimately became New Jersey’s Act were more expansive, covering “any objects, wares, goods, commodities, services, and anything offered, directly or indirectly, to the public for sale,”¹¹ and banning electronic shelf labels in their entirety.¹² Electronic shelf labels display price and product information digitally on store shelves, enabling instant price changes. The Act was significantly narrowed to cover only groceries and related products, to permit electronic shelf labels already in use, and to prohibit only the new use of electronic shelf labels for one year while the State studies the technology.

The Fair Price Protection Act

The Fair Price Protection Act, which will take effect on August 1, 2027, makes it an “unlawful practice” and a violation of the New Jersey Consumer Fraud Act (CFA) for a person or entity to use surveillance pricing. “Surveillance pricing” includes pricing strategies determined by an algorithm or automated system based on personal data that result in price variation among consumers. “Personal data” means information that is linked or reasonably linkable to an identifiable consumer.

The Act applies to “groceries and other foodstuffs,” which include edible products and other household goods like paper products, household cleaning items, health and beauty products, and pet foods and supplies. It does not apply to food or beverages prepared for immediate consumption on or off the premises of a food service establishment.

The Act provides exceptions for certain price differences, discounts, and loyalty programs:

• Price differences based on reasonable costs associated with providing products to different consumers, so long as each price is not changed more than once in a 24-hour period;
• A discount for which eligibility criteria are publicly and conspicuously disclosed and uniformly offered; and
• A discount offered as part of a loyalty program, so long as the program meets specific requirements, including that it is voluntary, applies uniform terms and conditions, provides clear and conspicuous disclosures to participants, and makes certain disclosures available to the Division of Consumer Affairs upon its request and to the public generally.
  
  

Personal data used in connection with these exceptions must not be used for any other purpose without the consumer’s consent.

The Act also imposes a one-year moratorium on the new use of electronic shelf labels in New Jersey. After the one-year moratorium, which begins to run on February 1, 2027, the new use of electronic shelf labels will be permitted in New Jersey, so long as the use complies with the CFA and other applicable law. The Act does not prohibit the use, repair, or replacement of electronic shelf labels in use before the moratorium.

Starting immediately, the New Jersey Innovation Authority, in consultation with the Division of Consumer Affairs, will study the use of electronic shelf labels to determine the effects and their impact on surveillance pricing. The Innovation Authority—established earlier this year to serve as the primary authority on technology innovation for New Jersey—will report its findings to the Governor and the Legislature no later than six months before the end of the moratorium.

Enforcement and Liability

Enacted to protect consumer safety, the Act authorizes the Attorney General of New Jersey to bring civil actions on behalf of New Jersey residents. Based on violations of the Act, the Attorney General may seek injunctive relief, enforcement of the Act, monetary damages for each negligent or greater violation of the Act, and other appropriate relief.

Because violations of the Act are also “unlawful practices” under the CFA, violations may expose grocery businesses to CFA liability. This includes civil penalties in actions brought by the Attorney General of up to $10,000 for a first violation and up to $20,000 for a subsequent violation, and actions by aggrieved consumers for treble damages.

Action Items

Businesses offering and selling groceries and related products should consider taking steps to comply with the Act and prepare for enforcement before the Act takes effect on August 1, 2027, including:

• Auditing pricing models, including algorithms, automated systems, and technological methods, systems, and tools;
• Determining whether personal consumer data affects, in whole or in part, pricing decisions;
• Reviewing discount and loyalty program compliance and disclosures; and
• Monitoring developments relating to electronic shelf labels.
  
  

Lowenstein Sandler’s White Collar Defense group is monitoring these developments. For more information about how the Fair Price Protection Act may affect your business, please contact us.

¹ P.L.2026, c.55.
² Press Release, Fed. Trade Comm’n, FTC Surveillance Pricing Study Indicates Wide Range of Personal Data Used to Set Individualized Consumer Prices (Jan. 17, 2025), https://www.ftc.gov/news-events/news/press-releases/2025/01/ftc-surveillance-pricing-study-indicates-wide-range-personal-data-used-set-individualized-consumer.
³ Press Release, Fed. Trade Comm’n, FTC Seeks Public Comment on Unfair and Deceptive Fee Practices in Online Food and Grocery Delivery Services (Apr. 14, 2026), https://www.ftc.gov/news-events/news/press-releases/2026/04/ftc-seeks-public-comment-unfair-deceptive-fee-practices-online-food-grocery-delivery-services.
⁴ Press Release, Congressman Frank Pallone, Jr., Pallone Launches Surveillance Pricing Inquiry (May 13, 2026), https://pallone.house.gov/media/press-releases/pallone-launches-surveillance-pricing-inquiry.
⁵ Press Release, Fed. Trade Comm’n, FTC Seeks Comment on Enforcement Policy Statement Regarding Personalized Pricing (Aug. 19, 2026), https://www.ftc.gov/news-events/news/press-releases/2026/08/ftc-seeks-comment-enforcement-policy-statement-regarding-personalized-pricing.
⁶ Fed. Trade Comm’n, Federal Trade Commission’s Proposed Enforcement Policy Statement Regarding Personalized Pricing 1 (Aug. 19, 2026), https://www.ftc.gov/system/files/ftc_gov/pdf/p034101-ftc-enforcement-policy-statement-re-personalized-pricing-proposed-for-public-comment.pdf.
⁷ Protection From Predatory Pricing Act, 2026 Md. Laws ch. 154.
⁸ Conn. Pub. Act No. 26-130.
⁹ A9349B, 2025–2026 Reg. Sess. (N.Y. 2026).
¹⁰ https://www.lowenstein.com/news-insights/publications/client-alerts/dynamic-pricing-in-the-crosshairs-california-launches-sweep-new-york-s-algorithmic-pricing-disclosure-in-effect-data-privacy.
¹¹ See A4085, 222d Legis. (N.J. 2026).
¹² See A4523, 222d Legis. (N.J. 2026).