A powerful coalition of New Jersey business leaders is sounding the alarm over proposed state legislation that they claim could inadvertently dismantle the loyalty programs and personalized discounts millions of residents use to offset inflation.
The bills, A-4085/S-3612, are aimed at curbing “surveillance pricing”—the practice of using data to surreptitiously raise prices for specific individuals. However, the business community warns that the legislation is written so broadly that it threatens to outlaw the very tools that provide coupons for baby formula, rewards points for seniors, and tailored digital deals for families on fixed incomes.
The coalition—which includes the New Jersey Food Council, NJBIA, and the State Chamber of Commerce—emphasizes a critical distinction between predatory pricing and consumer-driven rewards.
“Personalized incentives are visible to, chosen by, and beneficial to the consumer,” the coalition stated in a release. In contrast, “surveillance pricing” is hidden and offers no choice. Business leaders argue that by targeting the data used for modern retail, the state could force a “one-price-fits-all” model that defaults to the highest possible price point for everyone.
“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,” Michele Siekerka, president & CEO of the New Jersey Business and Industry Association, said.
The legislation also takes aim at electronic shelf labels (ESLs)—the digital price tags increasingly replacing paper stickers in grocery stores. While some skeptics fear these tags could enable “surge pricing” (similar to ride-share apps during a rainstorm), retailers insist they are essential for accuracy.
Leslie Sarasin, president & CEO of FMI – The Food Industry Association, noted that ESLs ensure the price on the shelf matches the price at the register and allow store associates to focus on customer service rather than manual labeling. “Despite misconceptions, these systems are not used for surge pricing or to track customers,” Sarasin said.
The timing of the bill is a major concern for the coalition, as many New Jerseyans rely on app-based discounts to “stretch their household budgets.”
Linda Doherty, President & CEO of the New Jersey Food Council, noted that modern pricing tools are vital for “families, students, seniors, and shoppers on fixed incomes.” Eric Blomgren of the New Jersey Energy Marketers Group added that restricting these tools would produce “fewer options and higher prices.”
Coalition members pointed out that New Jersey already has robust consumer protections, including:
- Price Gouging Laws: Preventing extreme hikes during state emergencies.
- Unit Pricing Regulations: Ensuring shoppers can compare costs accurately.
- Weights and Measures: Guaranteeing consumers get what they pay for.
The coalition’s message to lawmakers in Trenton is that innovation should not be mistaken for intrusion. They are urging a more surgical approach to legislation that protects consumers from bad actors without stripping away the rewards programs that Garden State shoppers have come to rely on.
The Business Coalition Includes:
- New Jersey Food Council
- New Jersey Business & Industry Association (NJBIA)
- Chamber of Commerce Southern New Jersey
- Commerce and Industry Association of New Jersey (CIANJ)
- New Jersey Retail Merchants Association
- New Jersey State Chamber of Commerce
- NFIB – National Federation of Independent Business
- FMI – The Food Industry Association
- Consumer Brands Association
- National Grocers Association
- New Jersey Energy Marketers Group
