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Maryland Bans Algorithmic Price Gouging
4 May
Summary
- Maryland bans personalized prices based on consumer data.
- Law takes effect October 1, 2026, applies to grocers and delivery.
- Other states and federal legislation also target algorithmic pricing.
Maryland has passed the Protection From Predatory Pricing Act, set to take effect on October 1, 2026. This new law prohibits retailers and delivery services from setting personalized prices for goods or services based on a consumer's personal data.
The legislation specifically excludes discounts offered through loyalty or subscription programs, as well as price adjustments related to taxes or shipping costs to a particular location. Retailers found in violation will have a 45-day period to rectify the issue to avoid enforcement actions.
This development comes after public scrutiny of practices like Instacart's AI tool, Eversight, which displayed varied prices for the same items. Such algorithmic pricing methods have also drawn attention from other states and federal lawmakers.
Several other states, including California, Hawaii, and New York, are also considering legislation related to algorithmic pricing. Federally, Representative Dan Goldman introduced the PRICE Act, which seeks to increase transparency in food delivery fees and ban exploitative pricing based on personal data.
