On July 23, 2026, New Jersey Governor Mikie Sherrill signed A4085 (the Fair Price Protection Act) into law, which prohibits companies from charging consumers different prices for groceries based on their personal data. New Jersey will join New York, Connecticut, and Maryland in imposing prohibitions and requirements on the use of personal data in determining pricing. Most provisions of the law will take effect on August 1, 2027.

Prohibition on Surveillance Pricing. The New Jersey Fair Price Protection Act will prohibit “surveillance pricing” or “any other pricing strategy that determines or varies” the sale price of groceries or other foodstuffs based, in whole or in part, on personal data. Surveillance pricing occurs when the data is collected through specific types of technology, including technology methods, systems, or tools like sensors, cameras, and other forms of observation capable of collecting information about a consumer’s behavior, characteristics, location, or other personal attributes. The Act will recognize several key exemptions, including:

  • Reasonable costs associated with providing groceries and other foodstuffs to different consumers, provided that the price is not changed more than once per 24 hours;
  • A bona fide discount (i.e., a price that is lower than the price at which groceries and other foodstuffs are advertised or offered for sale in recent, regular course of business) with publicly and conspicuously disclosed and uniformly offered criteria, such as discounts provided to teachers or veterans; and
  • A bona fide discount offered as part of a loyalty program, provided that consumers opt in on a voluntary basis, all members receive uniform pricing benefits pursuant to publicly available uniform terms and conditions, and the program provides clear and conspicuous disclosures of pricing benefits.

Moratorium on Electronic Shelf Labels. The Act will also impose a one-year moratorium on the new use of electronic shelf labels that determine or vary the sale price of groceries or other food stuffs based (in whole or in part) on personal data. In the interim, the state will conduct a study on the use of electronic shelf labels.

A violation of the Act will be treated as an unlawful practice under New Jersey’s consumer protection laws and is enforceable by the New Jersey Attorney General.

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Photo of Lindsey Tonsager Lindsey Tonsager

Lindsey Tonsager is a recognized leader in representing companies before federal and state regulators, and is renowned for advising on minor protection, AI, and state comprehensive privacy laws.

Lindsey chairs the firm’s global Data Privacy and Cybersecurity practice. She advises clients in their…

Lindsey Tonsager is a recognized leader in representing companies before federal and state regulators, and is renowned for advising on minor protection, AI, and state comprehensive privacy laws.

Lindsey chairs the firm’s global Data Privacy and Cybersecurity practice. She advises clients in their strategic and proactive engagement with the Federal Trade Commission, the U.S. Congress, the California Privacy Protection Agency, and State Attorneys General on proposed changes to data protection laws, and regularly represents clients in responding to investigations and enforcement actions involving their privacy and information security practices.

Lindsey’s practice focuses on helping clients launch new products and services that implicate the laws governing the use of artificial intelligence; data processing for robotics, autonomous vehicles, and other connected devices; biometrics; online advertising; the collection of personal information from children, teens, and students online; e-mail marketing; disclosures of video viewing information; and new technologies.

Lindsey also assesses privacy and data security risks in complex corporate transactions where personal data is a critical asset or data processing risks are otherwise material. In light of a dynamic regulatory environment where new state, federal, and international data protection laws are always on the horizon and enforcement priorities are shifting, she focuses on designing risk-based global privacy programs for clients that can keep pace with evolving legal requirements and efficiently leverage the clients’ existing privacy policies and practices. She conducts data protection assessments to benchmark against legal requirements and industry trends and proposes practical risk mitigation measures.

Photo of Laura Kim Laura Kim

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her…

Laura Kim has a proven track record of successfully resolving clients’ most important consumer protection matters before the FTC, State AGs, and the NAD. She is well-known for her insider knowledge of the FTC as well as her practical approach to accomplishing her clients’ objectives.

As chair of Covington’s Advertising & Consumer Protection Investigations practice group, Laura represents corporate and individual clients in investigations before the FTC and State Attorneys General. She also provides pragmatic compliance advice on a wide range of consumer protection issues, including substantiating claims involving generative artificial intelligence, environmental benefits, and “Made in USA.” She counsels brands on emerging issues involving influencers, consumer reviews, AI-generated content, and subscription autorenewals. Laura regularly represents both challengers and advertisers before the NAD, achieving favorable outcomes in matters involving artificial intelligence, influencers, and claim substantiation.

During her twelve-year tenure at the FTC, Laura served as Assistant Director in two divisions of the Bureau of Consumer Protection, Attorney Advisor to Chairman William E. Kovacic, and Chief of Staff to Bureau Director Jessica Rich. She oversaw major rulemakings—including the Green Guides and the Telemarketing Sales Rule—and supervised dozens of investigations and enforcement actions. As Assistant Director in the Division of Enforcement, Laura also supervised compliance monitoring and enforcement proceedings for companies under federal court or Commission order.

Photo of Jayne Ponder Jayne Ponder

Jayne Ponder counsels companies on the intersection of privacy, AI, and emerging technology regulation, and routinely represents clients in regulatory inquiries, investigations, and enforcement matters before federal and state agencies.

Jayne counsels clients across industries to launch and enhance products, services, and governance…

Jayne Ponder counsels companies on the intersection of privacy, AI, and emerging technology regulation, and routinely represents clients in regulatory inquiries, investigations, and enforcement matters before federal and state agencies.

Jayne counsels clients across industries to launch and enhance products, services, and governance programs involving their collection and use of data and emerging technologies. Her experience spans U.S. comprehensive privacy, automated decisionmaking, AI governance, biometric privacy, surveillance and algorithmic pricing, and AI transparency, disclosure, and safety frameworks. She partners with clients to design products and governance programs that keep pace with the dynamic regulatory environment, including in connection with digital and online advertising, social media, AI-powered and agentic services, connected devices, and robotics.

In addition, she advises companies on engagement with federal and state regulators, including through enforcement and rulemaking. Jayne analyzes privacy and security risks in complex corporate transactions. She also provides strategic input on the legislative, regulatory, and policy developments shaping the privacy and AI landscape.

Jayne maintains an active pro bono practice, focusing on assisting nonprofits with their privacy programs and elder estate planning.

Photo of Rosie Moss Rosie Moss

Rosie Moss is an associate in the firm’s Washington, DC office. She is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

Rosie advises clients on a wide range of data privacy and technology…

Rosie Moss is an associate in the firm’s Washington, DC office. She is a member of the Data Privacy and Cybersecurity Practice Group and the Technology and Communications Regulation Practice Group.

Rosie advises clients on a wide range of data privacy and technology regulatory issues, including emerging artificial intelligence compliance matters. She assists clients in complying with federal and state privacy laws and Federal Communications Commission (FCC) regulations. Rosie also maintains an active pro bono practice.