The New Jersey Business and Industry Association recommended changes to the proposed Fair Price Protection Act during testimony before the Assembly Consumer Affairs Committee on March 19. The legislation, an Assembly committee substitute for A-4085/A-4523, seeks to ban ‘surveillance pricing,’ a practice where companies use personal data such as income or online habits to set different prices for products.
The issue is significant because it addresses how consumer data can be used in retail pricing and aims to ensure fairness for shoppers while allowing businesses to operate efficiently. The bill would require merchants to establish a baseline price for products and prohibit using personalized algorithmic pricing to raise prices above that baseline based on individual shopper data.
“Consumers should have confidence that prices they see are fair, consistent and not driven by opaque uses of their personal data,” said Althea D. Ford, Vice President of Government Affairs at the New Jersey Business and Industry Association. “At the same time, it is critical that any statutory framework carefully distinguish between harmful pricing practices and legitimate longstanding business operations.” Ford suggested amendments including protections for loyalty discount programs, exemptions for differential pricing based on factors like time of day or inventory levels, and clarifications regarding electronic shelf labeling technology.
Ford also said some collected personal data may be necessary for important communications unrelated to pricing, such as product recalls. She added: “Some other items we encourage is explicitly protecting membership-based pricing programs and personalized offers based on purchase history, adding an exemption for differential pricing based on time of day, seasonality, inventory levels, perishability and other legitimate business factors applied uniformly, and expanding the bona fide discount exemptions to include loyalty programs with points or credit systems.”
The Assembly Consumer Affairs Committee voted to advance the bill, sponsored by Assemblyman Chigozie Onyema (D-28), sending it next to the Assembly Commerce & Economic Development Committee for further review.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing employers across various sectors according to its official website. It advances competitive excellence and financial success of its members while delivering essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website. The association supports private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy along with practical information and cost-saving benefits according to its official website.
