New Jersey has become the first state to enact a one-year moratorium on electronic shelf labels (ESLs) through the newly signed Fair Price Protection Act, which bans surveillance pricing. This legislation prevents retailers from adjusting prices in real-time based on factors such as a shopper's online activity, location, or purchase history.
Governor Mikie Sherrill stated that the law prioritizes New Jersey consumers, protecting their privacy and ensuring pricing fairness. "New Jersey families are already feeling the pressure of higher costs. The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product," Sherrill said in a press release. "If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers."
The bill, effective February 1, 2027, allows the New Jersey Innovation Authority to study ESL technology during the temporary pause. However, it does not require retailers to remove or cease repairs on existing electronic price tags. The suspension specifically impacts retailers who have not yet implemented ESLs.
Retailers like Kroger and Walmart have adopted ESLs, citing benefits such as reduced paper waste and labor savings, allowing employees to assist customers more directly. However, consumer advocates express concerns that these digital tags could enable dynamic pricing, where prices fluctuate rapidly.
Senators Elizabeth Warren and Bob Casey have voiced similar concerns, noting in a letter to a major grocery chain that digital price tags could lead to price surges based on "the time of day, the weather, or other transitory events."
This action follows Maryland's lead, which passed a law in April 2026 banning dynamic pricing. Maryland's Protection From Predatory Pricing Act prohibits grocers and delivery services from using dynamic pricing or personal data to inflate prices. However, Consumer Reports characterized Maryland's law as weak, citing insufficient enforcement provisions and limitations on consumers' ability to sue companies for surveillance pricing.
New Jersey's legislation distinguishes itself by including a one-year pause on the implementation of new ESLs, a measure absent in Maryland's law. The Fair Price Protection Act aims to ensure consumers pay consistent prices at the register, preventing opportunistic price adjustments.