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Proposed State Legislation Could Cost You at the Checkout
Business coalition rallies to protect loyalty programs and personalized deals
TRENTON - You just had a baby and use coupons for formula when the following week your app has a coupon for baby wipes. Magic? Nope — just a smart loyalty program doing exactly what it was designed to do.
Now imagine state lawmakers making that illegal.
That's what a coalition of New Jersey business groups claims could happen if proposed legislation, A-4085/S-3612, passes in Trenton. The coalition does not oppose the underlying concept of addressing so-called “surveillance pricing”; however, they contend that the bill casts such a wide net that it could wipe out the personalized discounts, loyalty rewards, and tailored promotions that Garden State shoppers count on to make ends meet.
According to the coalition, 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 that exciting new flavor hitting shelves. It's not surveillance — it's convenience, and it's a choice that shoppers actively make.
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 are designed to maintain consumers’ trust without disrupting the tools retailers use to deliver value to shoppers, coalition members say.
“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 takes aim at controversy surrounding 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. 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,” said Leslie G. Sarasin, President & CEO of FMI – The Food Industry Association. She adds that “preserving the ability for grocery stores to use electronic shelf labels is essential to maintaining pricing accuracy, supporting store associates and continuing to provide value to customers through markdowns in a rapidly evolving retail environment.”
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,” he 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.”
Find more resources on electronic shelf labels and pricing at this Linktree.
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
Editor's Note: A coalition member - the New Jersey Food Council - is a client of Jaffe Communications. The firm's owner is a TAPinto franchisee.
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Source : https://www.tapinto.net/towns/raritan-bay/sections/business-and-finance/articles/proposed-state-legislation-could-cost-you-at-the-checkout