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New Jersey Bans Electronic Shelf Labels

Financial Times Companies •
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New Jersey has become the first Mist state to halt the rollout of electronic shelf labels (ESLs), a decision driven by consumer anger over rising food costs and fears that the technology could enable surveillance pricing. Governor Mikie Sherrill signed the Fair Price Protection Act, which bans the use of personal data to charge different prices and pauses new ESL installations for a year.

The United Food & Commercial Workers International Union, representing 100,000 workers, played a key role. Union vice‑president Ademola Oyefeso argued that ESLs threaten jobs and could force shoppers to adapt to rapidly changing prices. The moratorium is seen as a safeguard against wage cuts that could affect union‑backed pension schemes.

Retailers are also feeling the squeeze. Bain Consulting reports that grocery sales volumes have fallen 2 per cent year‑on‑year as consumers cut back on food spending amid inflation and reduced nutrition subsidies. Albertsons has already trimmed its sales outlook, pushing its shares down more than 20 %. The cost of installing ESLs can reach $400,000, but companies say the investment pays off in lower labour costs.

Vusion, the leading ESL vendor, claims 650mn labels are deployed worldwide, yet its senior VP Jessica Vittorio says the tech lacks the sensors needed for dynamic pricing. Walmart, which already uses ESLs in all 62 New Jersey stores, insists it only changes prices when stores are closed and will continue to use the system by year‑end.