New Jersey is poised to make history as the first state in the nation to outlaw so-called surveillance pricing and halt the rollout of electronic shelf labels (ESLs) in grocery stores.
The state’s legislature recently passed the Fair Price Protection Act, which targets data-driven, algorithmic pricing models that consumer advocates warn are designed to hike grocery costs on the fly. Supported by an overwhelming bipartisan majority, the bill now awaits Gov. Mikie Sherrill, who is expected to host a signing ceremony in the coming weeks.
The legislative push was heavily championed by the United Food and Commercial Workers (UFCW) International Union and the Retail, Wholesale and Department Store Union (RWDSU), which represent thousands of grocery retail workers across the state. Union leadership argues that the sudden influx of automated pricing technology threatens both the wallets of working families and the livelihoods of essential workers.
Driving Up Costs Through Corporate Data
Unlike traditional paper price tags, ESLs allow retailers to alter costs instantaneously. Major retailers have already begun aggressive rollouts; Walmart, for example, has announced plans to replace paper tags with digital ones across all its stores by the end of 2026. Furthermore, some major corporations have secured patents to use shoppers’ personal data to dynamically scale prices.
Polling shows that New Jerseyans are deeply wary of the tech, with 61% saying they think ESLs will increase their grocery bills and 67% fearing the same from surveillance pricing.
“With costs continuing to rise, the last thing consumers need is price gouging at the grocery store,” the New Jersey UFCW and RWDSU local presidents say in a joint statement. “This legislation will protect families across New Jersey from having their personal data used against them to squeeze every cent they have.”
A 50-State Labor Battle
The bill in New Jersey marks the opening salvo of the UFCW’s nationwide “Affordable Groceries and Good Jobs Campaign.” The union says it has established a 50-state strategy to combat the encroachment of artificial intelligence-driven tech in retail aisles. With many state legislative sessions adjourned for the year, organizers are immediately shifting focus to Illinois, aiming to advance a similar ban during its fall veto session.
UFCW International Vice President Ademola Oyefeso emphasizes that the issue is a matter of immediate national urgency.
“New Jersey is now the first state to stand up for shoppers and make clear that this predatory technology has no place in our grocery stores,” Oyefeso says. “Electronic shelf labels are nothing more than a tool for corporations to hike prices and eliminate good jobs. Any lawmaker who is serious about lowering the cost of groceries in their state needs to make banning ESLs and surveillance pricing in grocery stores a priority — Americans cannot afford to wait.”
The Human Toll in the Aisles
Beyond corporate profits, labor advocates say automating price tags erodes the customer experience and threatens health habits. In a follow-up call with The Packer, Oyefeso points out that fluctuating, real-time prices often scare budget-conscious shoppers away from perishable items first.
“When people can’t afford it, they leave it on the shelf, right? And the first thing people always leave on the shelf are vegetables and fruit,” Oyefeso says, warning that dynamic pricing also risks letting fresh produce rot.
He also emphasizes that replacing skilled grocery clerks with digital screens strips the human element from the community. Banning the tags, Oyefeso says, ensures there will still be knowledgeable workers in the fresh produce section to guide shoppers.
“Now there’ll actually be a worker whose job it is to place the label, who can tell me, ‘No, pick the watermelon with a little yellow on the bottom, so your wife won’t be mad.’”
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