Will other states take the same action?
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Maryland has become the first state to ban surveillance pricing in grocery stores
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The new law targets the use of personal data to set individualized prices
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Supporters say it protects consumers, while retailers warn of unintended consequences
Maryland is breaking new ground in consumer protection, becoming the first state in the nation to prohibit so-called surveillance pricing in grocery stores a practice that uses shoppers personal data to charge some consumers higher prices than others.
Gov. Wes Moore signed the legislation into law this week, marking a significant shift in how retailers can use customer information. The measure bans grocery stores from adjusting prices based on data such as a shoppers purchase history, location, income level or online behavior.
Supporters say the move is designed to ensure transparency and fairness at a time when digital tools are increasingly shaping the shopping experience.
What is surveillance pricing?
Surveillance pricing refers to the use of algorithms and consumer data to set different prices for different shoppers, even for the same item. While retailers have long used loyalty programs and coupons to offer discounts, critics argue that newer technologies could allow companies to quietly charge higher prices to certain customers based on what they are willing or able to pay.
Maryland lawmakers said the practice raises concerns about privacy and potential discrimination.
"People deserve to know what price is on the shelf, and the price on the shelf is exactly the price they are going to pay at the checkout," Moore said at the signing ceremony.
"People deserve to know that the price that they pay is not different (from) the customer who walked in just before them, or different from the customer who walked in right after them. People deserve to know that their data will not be used against them to charge them more."
What the law does
The new law prohibits grocery retailers from using personal data to determine individualized pricing in-store or online. It does not ban traditional sales, coupons or loyalty rewards programs, as long as those discounts are applied uniformly and transparently.
Retailers are still allowed to collect customer data, but they cannot use it to set different base prices for identical products.
Violations could result in fines and enforcement actions by the states consumer protection office.
Industry concerns
Retail groups have raised concerns about how the law could affect innovation and pricing strategies. Some argue that data-driven pricing can help stores manage inventory, reduce waste and offer targeted discounts to shoppers.
They also warn that broadly restricting data use could limit personalized deals that many consumers value.
Consumer advocates say the risks outweigh the benefits, especially if shoppers are unaware that prices may vary based on their personal profiles.
A potential model for other states
Marylands law comes as policymakers across the country take a closer look at how companies use consumer data. While dynamic pricing is common in industries like travel and ride-sharing, its expansion into everyday essentials like groceries has drawn increased scrutiny.
Advocates say other states may follow Marylands lead if concerns about fairness and transparency continue to grow.
Posted: 2026-04-30 14:23:26

















