A coalition of New Jersey business groups, which includes NJBIA, is warning that pending legislation to address so-called “surveillance pricing” casts such a wide net that it could wipe out the personalized discounts, loyalty rewards, and tailored promotions shoppers count on. 

The bills, (A-4086/S-3612), seek to outlaw surveillance pricing — the practice of using data to surreptitiously raise prices for specific individuals. However, the coalition notes there is a distinction between predatory pricing and consumer-driven rewards, such as sending coupons for baby wipes to a consumer’s app if they’ve already used coupons for diapers and formula. 

According to the New Jersey Food Council, there are three primary principles at stake in this debate: transparency, consumer choice, and consumer impact. Personalized incentives are visible to, chosen by, and beneficial to the consumer, while “surveillance pricing” works in exactly the opposite way with pricing changes that are hidden, give the consumer no choice, and cause the consumer to pay more.

Fans of personalized deals know the drill: you opt into a loyalty program, you shop your usual  routine, and the savings follow. Buy yogurt every week? Here's a coupon for a new flavor hitting shelves. It's not surveillance — it's convenience, and it's a choice that shoppers actively make, the Food Council said in a statement this week.

The state already enforces price gouging laws that prevent extreme price increases during emergencies, along with a comprehensive set of regulations covering weights and measures, unit pricing, advertising, and rainchecks. Together, these safeguards help maintain consumers’ trust without disrupting the tools retailers use to deliver value to shoppers. 

“Modern pricing tools enhance the coupons, loyalty rewards, and personalized deals that millions of New Jerseyans rely on every day to stretch their household budgets,” said Linda Doherty, president & CEO of the New Jersey Food Council. "Protecting these tools truly matters for families, students, seniors, and shoppers on fixed incomes." 

Michele Siekerka, president & CEO of the New Jersey Business and Industry Association, put it plainly: "Instead of a generic coupon that may never apply to anything in a shopper's cart, customers get personalized deals on the products they already buy."

In other words — fewer coupons for cat food when you only own a dog.

The bill also takes aim at electronic shelf labels — the digital tags replacing paper tags in stores across the state. Retailers invest in them because they virtually eliminate pricing errors and keep shelf prices in sync with the register. Shoppers benefit from discounts and price accuracy. And store associates spend less time wrestling with thousands of paper stickers each week and more time helping customers. 

“Electronic shelf labels help grocers deliver accurate, transparent pricing while reducing material waste and improving the shopping experience,” said Leslie G. Sarasin, president & CEO of FMI – The Food Industry Association. “Despite misconceptions, these systems are not used for surge pricing or to track customers—they simply ensure prices are consistent between the shelf and the point-of-sale.” 

Another coalition member, John Holub of the New Jersey Retail Merchants Association, agrees: "Electronic shelf labels should not be conflated with surveillance. They're a better, smarter price tag — full stop.”

Anthony Russo of the Commerce and Industry Association of New Jersey summed up what this coalition is fighting for: "Today's shoppers have built their household budgets around these custom savings tools. What has changed is the delivery,” Russo added. “Technology has made discounts faster, smarter, and more personalized.”

Eric Blomgren of the New Jersey Energy Marketers Group added that when businesses offer individualized discounts, everyone wins — stores can stretch their promotional dollars further, and more customers walk away with more savings.

“Restricting these pricing tools would not produce fairer outcomes for consumers — it would produce fewer options and higher prices,” Blomgren said. “Without data-driven pricing, businesses lose the ability to offer products at different price points. The likely result is one price for everyone: the highest one.”

Coalition members include:

• Chamber of Commerce Southern New Jersey
• Commerce and Industry Association of New Jersey
• Consumer Brands Association
• FMI – The Food Industry Association
• National Grocers Association
• New Jersey Business & Industry Association
• New Jersey Energy Marketers Group
• New Jersey Food Council
• New Jersey Retail Merchants Association
• New Jersey State Chamber of Commerce
• NFIB – National Federation of Independent Business