The benefit of electronic shelf labels (ESL) in retail, convenience stores and grocers is being clouded by a biased poll commissioned by two labor unions and then published in New Jersey media as “news.”
Rather than acknowledge that ESLs save customers money, the unions want our shoppers to believe digital price tags and surveillance pricing will raise grocery prices. Not surprisingly, this tactic is trying to generate the same biased conclusion in New York, funded by these labor unions. Oh, and Maryland too.
So, let’s move on to facts: an independent study from reputable, non-profit entities: the University of Texas, the University of California and Northwestern University.
Researchers from the well-respected, unbiased three universities concluded that ESLs are not causing surge pricing at the supermarket.
The researchers, conducting an in-store study, examined transactions at a national grocery retailer with $3 billion in annual revenue that has ESLs in more than 100 stores. They reported: “We find virtually no surge pricing either before or after ESL adoption.”
ESLs do not track individual consumers, do not vary prices based on who is standing in the aisle and do not engage in any form of surveillance. They show prices. Nothing more.
It is important that New Jersey lawmakers know the facts, as there is now proposed legislation that would prohibit retailers from using personalized pricing strategies based on consumer data and impose significant, unclear restrictions on ESLs.
The bill creates serious unintended consequences, ultimately harming the very shoppers it seeks to protect. There is now a growing coalition of business and consumer groups in New Jersey who are rightfully raising alarm.
Grocers, convenience stores, and other retailers rely on consumer purchase data to offer customized discounts and coupons through loyalty programs. A shopper who recently bought dog food, for example, may receive a coupon for dog treats through her loyalty account.
The same technology will ensure she is not sent coupons for kitty litter as she clearly does not own a cat.
These loyalty programs are entirely voluntary, consumers opt in to receive promotions tailored to their preferences. Personalized offers are based on purchase history, not on race, income or any other protected class attribute.
Beyond savings, loyalty programs deliver meaningful non-monetary benefits: recipe suggestions, nutritional information and timely alerts about product recalls. Millions of New Jersey families count on these programs to stretch their grocery budgets.
Accuracy matters, too. When a pricing error occurs, ESLs can be corrected immediately — a critical advantage for retailers trying to comply with New Jersey’s unit pricing laws. Unit price label formats, whether print or digital, must be approved by the state Division of Consumer Affairs before they are displayed in stores.
The technology has earned recognition at the federal level as well: The National Institute of Standards and Technology Unit Pricing Guide recommends that retailers “consider the adoption and implementation of digital signage, such as ESL, for efficiency and ease in pricing, unit pricing, price changes, and price history.”
The focus of this debate is simple: Should shoppers be rewarded with personalized discounts for choosing loyalty programs? We say, unequivocally, yes. In any legitimate poll, we know every shopper would agree.
This proposed bill is a step backward, and lawmakers must reject it. Real consumer protection means building on the benefits people already have, not gutting them under the guise of reform.
