New Jersey bans dynamic pricing, imposes one-year moratorium on new electronic shelf labels

An electronic shelf label in a Walmart store. Digital shelf labels allow associates to change prices all at once. · Grocery Dive · Courtesy of Walmart

By Catherine Douglas Moran Fri, July 24, 2026 at 4:18 AM PDT 2 min read

This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter.

Dive Brief

• New Jersey Gov. Mikie Sherrill on Thursday signed the Fair Price Protection Act, which bans businesses from using consumer data to set individualized prices.
• The legislation also imposes a one-year moratorium on the new use of electronic shelf labels. It does not affect how retailers set prices for loyalty program members or discounts "offered to broadly defined groups," such as teachers or veterans.
• The ban follows similar actions in other states, such as Maryland, which have cracked down on pricing practices that consumer advocates claim are predatory.

Dive Insight

Before receiving Sherrill's signature, the legislation prompted strong and mixed reactions.

The National Grocers Association urged Sherrill to make "targeted" changes to the bill, including:

• Clarifying provisions affecting discounts and promotions
• Improving transparency around delivery fees and pricing disclosures
• Removing the legislation's moratorium on electronic shelf labels

Chamber of Progress, a tech industry coalition, claimed the "flawed" bill would impact discounts.

Meanwhile, the United Food and Commercial Workers International Union, which has been pushing for states to ban ESLs and pricing practices it claims are discriminatory, praised the legislation as strengthened protection for consumers and workers.

The announcement from Sherrill's office indicated that the governor signed the legislation to encourage practices that would help make groceries more affordable.

"If businesses want to compete, they should do so by offering better prices, not by finding new ways to squeeze shoppers. This law puts New Jersey shoppers first by protecting their privacy and ensuring fairness in pricing," Sherrill said in a statement.

Sherrill's office noted that while companies have long adjusted prices based on market conditions, "surveillance pricing" allows retailers to set prices based on an individual's characteristics, "often without their knowledge."

The one-year pause on ESLs only affects retailers that have not yet added the technology. Those that have, or are replacing or repairing existing ESLs, will not be affected. The pause allows the New Jersey Innovation Authority, a newly created office within the state's treasury department, to study the technology's impacts.

The legislation will take effect "on the first day of the seventh month next following the date of enactment," according to its text.

Recommended Reading

• Maryland bans dynamic pricing