Legislation would ban surveillance pricing on groceries and institute a one-year moratorium on electronic shelf label technology
TRENTON, N.J. – Last week, New Jersey legislators advanced a bill as part of the United Food and Commercial Workers International Union’s “Affordable Groceries and Good Jobs Campaign,” to ban the predatory practice of “surveillance pricing,” target the encroachment of AI-driven technology in grocery stores, and deliver fair prices for families while preserving good, union grocery jobs.
The legislation would ban surveillance pricing in grocery stores and institute a moratorium on electronic shelf label (ESL) technology for one year. This comes as Walmart patents new technologies to enable algorithms to set prices and automatically change prices on customers.
UFCW International Vice President Ademola Oyefeso said:
“New Jersey legislators are taking a strong first step towards protecting families and workers from these harmful pricing technologies. No one should have to watch prices jump in front of their eyes as they buy food for their family.
“This moratorium should lead to a total ban on electronic shelf labels. Walmart has developed new tech to allow algorithms to set prices automatically, and these types of investments make it clear that electronic shelf labels are a key piece of the predatory pricing model. They deserve no place in our grocery stores.”
Email press@ufcw.org to speak with a spokesperson about the threat that surveillance pricing and electronic shelf labels pose to fair grocery prices and good, union jobs.
BACKGROUND
- In addition to New Jersey, state legislators in Minnesota, Georgia, Iowa, New York, Illinois, Oklahoma, Washington, Arizona, Nebraska, Maryland, and Tennessee have introduced the UFCW’s surveillance pricing and ESL legislation. Throughout 2026, more states will introduce this legislation.
- At the federal level, the Stop Price Gouging in Grocery Stores Act has been introduced in the U.S. House and Senate.
- In 2024, the Federal Trade Commission (FTC), under Chair Lina Khan and the Biden administration, initiated a study into surveillance pricing practices and released initial findings in January 2025 detailing the practice. However, shortly after President Trump took office, the FTC killed the inquiry.
- ESLs are the missing piece of the surveillance pricing puzzle. With ESLs, companies can change prices in the blink of an eye, and when combined with the AI tools and data collection of surveillance pricing, customers don’t stand a chance at the grocery stores.
- Some retailers are racing to deploy ESL technology in their stores. Walmart has announced it will bring ESLs to 2,300 of its stores by 2026. Kroger began using ESLs in dozens of stores in 2018, expanding to 500 in 2023. Schnucks (St. Louis area) is working to expand ESLs to all 115 stores.
- ESLs also threaten the livelihoods of grocery workers. These systems could replace the skilled work of grocery clerks or, at the very least, leave them to explain a company’s actions to rightfully angry shoppers. The UFCW represents more than 800,000 grocery workers across North America. UFCW members are essential to keeping our communities fed, and they know how disruptive ESLs could be for workers and shoppers alike.
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The UFCW International is the largest private sector union in the United States, representing 1.2 million workers and their families in grocery, meatpacking, food processing, health care, cannabis, retail, and other essential industries. UFCW members serve our communities in all 50 states, Canada, and Puerto Rico. Learn more about the UFCW at ufcw.org.