Maryland Bans Sneaky 'Surveillance Pricing'

Maryland is pioneering a ban on surveillance pricing in retail grocery stores, a practice where algorithms set different prices for identical items based on individual shopper data. Governor Wes Moore is set to sign the Protection from Predatory Pricing Act into law, effective October 1, 2026. This landmark legislation prohibits retailers from using surveillance data, shopping history, ethnicity, or income to differentiate prices for customers at the same time. Under the new law, prices must be fixed for a minimum of one full business day, preventing real-time price fluctuations based on demand or personal profiles. Consumer protection advocates, including Consumer Reports, supported the bill, though some critics note that exemptions for loyalty programs could still allow for price disparities. The move by Maryland follows similar investigations into pricing practices, such as one concerning Instacart, which subsequently ended its dynamic pricing program. Other states like California, Colorado, Illinois, and New Jersey are considering similar legislation, with New York already having enacted a pricing transparency law. Enforcement of the Maryland law is primarily vested in the Attorney General, with initial fines for violations capped at $10,000 for first-time offenders. Despite its limitations, advocates view the law as a significant step towards regulating predatory pricing and a template for future legislation.