Surveillance pricing no longer allowed by law in New Jersey
Gov. Sherrill signed a law which would carry a $10,000 fine for companies using surveillance pricing.
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Surveillance pricing is no longer going to be allowed in New Jersey now that Gov. Mikie Sherrill has signed a law that will consider the practice a form of consumer fraud.
Surveillance pricing is a method of charging shoppers based on what companies think you can afford. The algorithm considers what a shopper has been buying or searching online or even where a person lives.
The practice leads to some shoppers paying more than others.
Gov. Sherrill says some families are paying $1,200 more per year for food. She called out Instacart and other online shopping platforms as the biggest offenders.
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Sherrill cited a Consumer Reports investigation saying, “They found that an app charged different shoppers up to 20% more for basic products like peanut butter or turkey.”
Sherrill added that "Surveillance pricing gives Big Brother a look into your shopping cart. It’s incredibly invasive and expensive."
The law also puts a one-year-long hold on the use of new electronic labels showing pricing on grocery store shelves. The state of New Jersey is going to study the effects of those pricing labels.
The governor was speaking from Newark at a place called Our Community Grocery Store, which has grown out of the increasingly high cost of food and groceries. It’s a co-op and asks that families pay what they can.
Also, as part of this new law, companies that continue to use surveillance pricing could face fines of $10,000 for a first offense.
