Personal data can no longer be used to set grocery prices in New Jersey. The new law targets both in-store and online data collection. Food delivery services are also covered. Exceptions exist for group discounts and opt-in loyalty programs.
Media and publishing professionals tracking privacy regulation should note that New Jersey has enacted a law banning the use of individual shoppers' personal data to determine grocery prices. The move directly impacts how retailers and food delivery platforms can leverage data for pricing strategies, with implications for digital commerce, audience segmentation, and data-driven monetization models.
Governor Mikie Sherrill signed the Fair Price Protection Act, which prohibits businesses from using personal data-including web browsing history, in-store sensor data, camera footage, and biometric information-to set prices for groceries. The law applies to both physical grocery stores and food delivery services such as Instacart, restricting the use of individualized data for price customization.
Under the statute, retailers may still offer discounts to broad groups, such as teachers or veterans, and can run loyalty programs that provide discounts based on past purchases, provided consumers opt in and certain conditions are met. The law aims to ensure that grocery prices reflect product costs rather than predictions based on invasive data collection.
With this legislation, New Jersey joins Maryland and Connecticut in restricting certain forms of personalized pricing. Other states, including New York, are considering similar measures. New York currently requires companies using algorithms for personalized pricing to disclose this practice to consumers, though that rule is being challenged in court by the National Retail Federation on First Amendment grounds.
Federal regulators are also examining the issue. The Federal Trade Commission recently solicited public comments on food delivery companies' pricing practices, including the use of personalized pricing. Sixteen state attorneys general have urged the FTC to require disclosure when prices are set based on individual data, and watchdog group Consumer Reports has called for broader regulation, citing findings that Instacart charged different prices for identical items at the same store. Instacart responded by ending its item price tests after the report was published. The U.S. Chamber of Commerce has argued that more information is needed before federal regulation is imposed.
