New Jersey Becomes First State to Pass Law Restricting Dynamic and Surveillance Pricing

New Jersey has made history by becoming one of the first states to impose restrictions on dynamic pricing, after Governor Mikie Sherrill signed the Fair Price Protection Act on July 24, 2026.

The legislation prohibits surveillance pricing, the practice of retailers adjusting prices in real time using digital tags based on individual customer data such as browsing behavior, location, and purchase history. As a result, New Jersey retailers can no longer factor a shopper's online behavior or personal history into checkout pricing.

The law also includes a one-year pause on new electronic shelf label (ESL) deployments while the New Jersey Innovation Authority evaluates the technology, though it does not require retailers to remove or stop repairing existing ESL systems already in place. Governor Sherrill clarified that the law does not prohibit loyalty programs or standard discounts.

New Jersey joins Maryland, which previously enacted the Protection From Predatory Pricing Act barring grocers and third-party delivery services from using dynamic pricing or personal data to set higher prices. The New Jersey law takes effect February 1, 2027, and signals a broader wave of state-level pushback against algorithmic pricing that pricing software vendors and retailers will need to track closely.