Amid the popularity of digital coupons that offer savings to tech-savvy consumers in many stores, state lawmakers want to level the playing field for those who can’t afford or don’t use smartphones while shopping.

Legislation that cleared a state Assembly committee earlier this week after a lengthy debate would require retailers in New Jersey that offer digital coupons to also provide a way for customers to get the same discount without the use of digital technology.

The goal of the bill, according to its sponsors, is to make shopping fairer for all consumers as inflation continues to be a major concern, including those customers who would benefit the most from in-store discounts.

“This, to me, is a bill about equity,” said Assemblywoman Verlina Reynolds-Jackson (D-Mercer). “I think this is about the haves and the have-nots.”

But the legislation is drawing significant pushback from influential business groups. Several sent representatives to Trenton to testify against the bill, arguing it could result in less generous discounts being offered to consumers in New Jersey, or in some cases, none at all.

“If passed, we believe that this will lead to less overall savings for all customers,” said Amirah Hussain, the New Jersey Chamber of Commerce’s director of government relations.

Open letter

Last year, concerns about “digital discrimination” and “digital-only” coupons were raised publicly by several national consumer-advocacy organizations in what they billed as an open letter to the supermarket industry.

In the letter, the group cited studies indicating seniors and those with lower incomes tend to lack access to or can’t afford things like smartphones, the internet and broadband wireless plans.

“These populations are shut-out of digital deals,” the letter said.

To remedy such concerns in New Jersey, legislation was introduced earlier this year that calls for stores offering digital coupons accessible to those with a smartphone, tablet or other electronic device to also “make available (an) in-store alternative of identical value,” according to the bill. That could be in the form of a paper coupon, an electronic kiosk, application of a discount at the point of sale or through some other method, the bill says.

The concept of the legislation itself is simple, Assemblyman Paul Moriarty (D-Gloucester) told members of the Assembly Commerce and Economic Development Committee during a Monday afternoon hearing.

“This is about fairness, it’s about equity, it’s about not marginalizing people,” said Moriarty, the lead sponsor of the bill.

“If you’re going to make available a discount, and you’re only going to put it in a digital space, this bill says you have to find a way to have an alternative,” he said.

Privacy concerns

Beverly Brown Ruggia, the financial justice program director at New Jersey Citizen Action, a group that works closely with low-income residents, also raised concerns about privacy and targeted marketing as she spoke in favor of the legislation.

“I, frankly, do not want everybody knowing about every single transaction that I make,” she said. “I would like to just shop and not have everyone know what I’m doing.”

Among those raising concerns about the bill was Mary Ellen Peppard of the New Jersey Food Council. She said the legislation, while well-intentioned, would likely result in fewer coupons and discounts being offered to consumers in New Jersey, including by manufacturers.

‘I think there is a way for retailers to figure out how they can become inclusive of all, and not exclude people because they don’t have access to the internet walking into the store.’ — Assemblywoman Verlina Reynolds-Jackson

Moreover, loyalty and rewards programs offered by many businesses in New Jersey — such as those that allow returning customers to accrue “points” or other credits that can be applied to future purchases — could also be covered under the current draft of the bill, she said.

“I don’t know how you would offer that discount to somebody who just walked into the store,” Peppard said. “What we don’t want to see is for these rewards programs to become very difficult to implement, very inefficient (and) very expensive.”

Jersey carve-out?

A similar concern was raised by Eric Blomgren from the New Jersey Gasoline, Convenience Store and Automotive Association, whose group includes many franchise owners whose customers he said could end up getting locked out of the rewards programs offered by their corporate partners.

“I’m just concerned that now, or in the future, when these big companies are designing these programs in their boardrooms far from here, do they just decide … to put a little line at the bottom of the advertising saying it does not apply in New Jersey,” Blomgren said.

Reynolds-Jackson, another sponsor, cited the high cost of things like eggs and milk as she spoke in support of the bill before it was ultimately approved by the committee in a 7-3 vote.

The bill now goes to the full Assembly for a vote. A companion version is pending in the Senate. Both must be approved before the legislative session ends early next month.

“I think there is a way for retailers to figure out how they can become inclusive of all, and not exclude people because they don’t have access to the internet walking into the store,” Reynolds-Jackson said.