Maryland moves to curb surveillance pricing in grocery stores and food delivery

Maryland law targets grocery pricing

Maryland’s Protection From Predatory Pricing Act is a bill the legislature passed in April 2026 and sent to Gov. Wes Moore for signature.

If signed, it would take effect on Oct. 1, 2026, and would restrict covered food retailers and third-party food delivery service providers from using dynamic pricing or personal data to set certain prices.

Violations would be enforced as unfair, abusive, or deceptive trade practices under Maryland law by the Attorney General.

Surveillance pricing explained simply

Surveillance pricing enables companies to adjust prices based on personal data. This includes browsing history, location, and past purchase behavior. Two shoppers can see different prices for the same item at the same time.

Retailers gather detailed customer data through apps and online activity. This data can include search patterns, income estimates, and shopping frequency. These insights help companies predict how much a person may be willing to pay.

This system creates uneven pricing across customers. One shopper may pay more than another without knowing it. The pricing difference is based on data rather than the product itself.

Dynamic pricing changes prices daily

Dynamic pricing adjusts prices based on factors such as demand, supply, and other business inputs, and prices can be updated multiple times in a single day.

The approach is already common in industries such as airlines and ride-sharing, and lawmakers say technologies such as electronic shelf labels make faster in-store price changes easier to carry out.

That concern helped drive Maryland’s effort to restrict the practice for covered grocery retailers and third-party food delivery providers.

New bill targets data-driven price changes

The Maryland bill would restrict covered food retailers and third-party food delivery service providers from using dynamic pricing or personal data to set certain prices. If signed, it would apply to both in-store grocery sales and covered delivery transactions.

The measure would limit same-day dynamic pricing for covered sellers, while still allowing several exceptions, including loyalty programs, memberships, subscriptions, and some objective cost-based differences.

Supporters say the bill is meant to reduce hidden price differences tied to personal data, but it does not create a blanket rule for all retail pricing in Maryland.

Fines reach up to $10,000 per violation

Under the bill, violations would be enforced through Maryland’s Consumer Protection Act. A first violation can result in a civil penalty of up to $10,000, and a second violation can result in a penalty of up to $25,000.

Enforcement would be handled by the Maryland Attorney General’s Consumer Protection Division.

The bill does not create a private right of action, and businesses would have a 45-day opportunity to cure an alleged violation after notice before enforcement proceeds.

Law still allows discounts and promotions

The Maryland bill does not ban every price difference. It preserves promotional pricing, loyalty and rewards programs, membership offers, and subscription-based pricing under specific conditions.

The measure is aimed at limiting certain data-driven price differences, not eliminating traditional sales programs.

But retail groups have not uniformly backed the bill. After amendments, the Maryland Retailers Alliance shifted from opposition to a neutral stance rather than endorsing the final measure.

Critics say loopholes weaken protections

Some consumer advocates argue the bill has gaps. Consumer Reports said exemptions for loyalty programs, memberships, and subscriptions could reduce its real-world impact.

Critics also object to the bill’s enforcement design, including its cure period before action can proceed.

Supporters still view the measure as a meaningful step, but critics say the carveouts and enforcement structure could limit its effectiveness in practice.

Grocery costs already strain households

Grocery prices remain a real concern for many households. In March 2026, the U.S. Bureau of Labor Statistics said food-at-home prices were up 1.9% from a year earlier, and the USDA projected food-at-home prices would rise 3.1% in 2026.

Supporters of Maryland’s bill say more predictable grocery pricing could make household budgeting easier.

The bill is aimed at limiting rapid, personalized price shifts for covered sellers, though it would not freeze all grocery prices or stop all price changes.

Technology enables rapid price changes

Retail pricing technology has advanced in recent years. Electronic shelf labels allow stores to change prices instantly. This replaces manual price updates with automated systems.

Apps and in-store systems track customer behavior. Cameras and software can analyze shopping patterns in real time. These tools provide data used for pricing decisions.

Lawmakers raised concerns about fairness. Two shoppers could be charged different prices for the same product. The difference may not be visible to customers.

Data-driven pricing can increase costs

A 2025 shopping test found price differences across users on Instacart. More than 400 shoppers buying the same items from the same stores at the same time often saw varying prices on the platform.

Researchers found average item-price gaps of about 13%, with some prices running as much as 23% higher than those shown to other shoppers.

The report estimated that those differences could add up to about $1,200 a year for a household of 4, helping fuel broader scrutiny of personalized pricing.

Retailers build detailed data profiles

Retailers can collect extensive information about shoppers, including purchase history, browsing activity, and location data. Those profiles can be built over time from multiple data sources.

Consumer Reports said one Kroger shopper received a 62-page profile after requesting his data, and the file included predictions about income and preferences that were not always accurate.

Privacy advocates warn that these profiles can be used to shape offers, recommendations, and potentially pricing by estimating what a shopper may be willing to pay.

Other states may follow Maryland

Maryland is the first state legislature to pass a bill specifically aimed at banning surveillance pricing in the grocery sector, but the measure is still awaiting Gov. Wes Moore’s signature.

Other states are also examining data-driven pricing. California, Colorado, Illinois, and New Jersey have considered similar proposals, while New York already has a disclosure law covering algorithmic pricing.

Maryland’s approach could still influence future legislation as more states debate how to regulate personalized pricing practices.

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Law aims to standardize grocery pricing

The Maryland bill aims to create more consistent grocery pricing for covered food retailers and third-party food delivery service providers.

If signed, it would limit same-day dynamic pricing for covered sellers and reduce the role of personal data in setting certain prices, while still allowing several exceptions such as loyalty programs and subscriptions.

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This slideshow was created with AI assistance and human editing.

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