Maryland has banned retailers and delivery apps from using shoppers’ personal data to set individualized prices in grocery stores [1].
This legislation targets a practice known as surveillance pricing, which allows companies to adjust costs based on a consumer's specific profile. By removing this capability, the state aims to prevent pricing models that could unfairly penalize shoppers based on their demographics or digital footprints.
Governor Wes Moore signed the Protection Against Predatory Pricing Act on April 28, 2024 [2]. The law is set to take effect later in 2024 [2]. Maryland is the first U.S. state to ban this specific pricing practice in grocery stores [1].
The law prohibits the use of a consumer's location, internet history, or demographic data to determine the price of a product [3]. These tools have been used by some retailers to implement dynamic pricing, where the cost of an item may fluctuate based on the perceived ability or willingness of a specific customer to pay.
Supporters of the act said that such practices are predatory and unfair [4]. The law applies to both physical retail locations and delivery applications, ensuring that the ban covers the full scope of the modern grocery shopping experience.
Retailers must now ensure that pricing remains consistent regardless of the personal data they may have collected on a customer. This shift moves the industry away from individualized surveillance and back toward standardized pricing for all consumers within a specific market.
“Maryland is the first U.S. state to ban surveillance pricing in grocery stores.”
This law establishes a legal precedent for consumer data protection in the retail sector. By classifying surveillance pricing as predatory, Maryland is shifting the burden of price stability onto the retailer rather than the consumer, potentially prompting other states to implement similar protections against algorithmic price discrimination.
