On May 14th, Consumer Reports testified before the New Jersey Assembly Commerce and Economic Development Committee regarding A4085, a bill aimed at prohibiting surveillance pricing in the sale of foodstuffs.
Surveillance pricing, also sometimes referred to as personalized pricing, is when a company uses personal data that they’ve gathered about a consumer—like data about their online search history, or inferences about family structure, health conditions, or income—to set the price of a product or determine the discount offered to a consumer.
CR is supportive of the legislature tackling surveillance pricing; A4085 could be an important starting point for prohibitions that cover the sale of goods and services more broadly. CR suggested some changes to the bill that could make the bill more workable for both consumers and retailers, including:
- Build upon existing New Jersey law on discounts
- Ensure that discounts are transparently offered and provide additional exemption for discounts that any consumer could potentially receive
- Expand definition of location
- Ensure enforcers can access the information they need, and add clear private enforcement
- Clarify that randomized differential pricing is also prohibited