New Jersey bans personalized pricing based on consumer data

New Jersey’s Fair Price Protection Act, signed by Governor Mikie Sherrill, makes it illegal for firms to create individualized price tags for essential items using personal data. The law distinguishes between acceptable discount methods—like coupons, clearance sales and voluntary loyalty programs—and the prohibited use of algorithms that factor in details such as recent promotions, appliance failures or commuting distances.

Advocates argue that this curbs a form of digital predatory pricing that exploits consumers’ financial stress. The bill references the historic role of the Federal Trade Commission in preventing price fixing, suggesting a modern update for algorithmic practices. Lawmakers hope the statute will inspire a uniform federal rule so that crossing state borders does not erase basic pricing protections. Critics note that the regulation leaves broader data-driven marketing untouched, focusing only on essential goods.