The New Jersey Business and Industry Association recommended amendments to the proposed Fair Price Protection Act on May 14, seeking a balance between consumer protection and allowing grocery stores to use technology for efficiency. The recommendations were presented in written testimony by Althea D. Ford, Vice President of Government Affairs at NJBIA, before the Assembly Commerce and Economic Development Committee.
Ford said, “In its current form, this bill creates a false choice between consumer protection and operational efficiencies when both objectives can and should coexist.” She emphasized that consumers should be confident about fair pricing while also recognizing the benefits of technology. “Consumers should have confidence that the prices they see are fair, consistent, and not driven by opaque uses of their personal data. At the same time, it is critical that any statutory framework carefully distinguish between: a. the use of technology and data voluntarily offered by consumers to engage in harmful, unfair or discriminatory pricing practices; b. the use of technology and data voluntarily offered by consumers to customize their shopping experience and lower costs; and c. the use of technology to communicate prices in a more timely and efficient manner,” Ford said.
Among her recommendations were establishing a definition for baseline price as standard practice for determining price; defining personalized algorithmic pricing and surveillance pricing as strategies that increase prices above baseline using personal data; asserting that such strategies would be considered unlawful under state law if they raise grocery prices based on personal information; and creating a cure period for addressing violations.
Ford also suggested clarifying conditions under which different prices could be offered—such as through loyalty programs—and removing references to electronic shelf labels from the bill text. She said these labels are valuable tools for accurate price display while freeing up retail staff for other tasks: “Additionally, we recommend language to clarify the conditions under which a different price could be offered, such as through loyalty programs and discounts, and to remove references to electronic shelf labels, which are a useful tool to ensure an accurate and timely display of prices while permitting the deployment of valuable retail personnel to higher priority tasks,” Ford said.
The New Jersey Business & Industry Association serves private-sector employers throughout New Jersey across various sectors with advocacy services designed to advance competitive excellence among its members according to its official website.
