Maryland has made a bold move by becoming the first state to ban “surveillance pricing” for groceries and food delivery services. This law aims to protect consumers from being charged different prices based on their personal data, which many worry could result in unfair pricing practices.
Governor Wes Moore emphasized that families are already feeling the pinch from rising costs. He stated, “New technologies should not be used to drive up bills for working families.” This new law, called the Protection from Predatory Pricing Act, seeks to ensure fairness in pricing amid the growing concern over how companies use consumer data.
Personalized pricing, where companies adjust prices based on individual data, has drawn criticism. Advocates believe it allows businesses to unfairly charge some customers more for identical products. Economic Action Maryland highlighted that shoppers often don’t know they are paying more than others for the same items.
The rise of electronic shelf labels in stores enables prices to be changed rapidly based on various factors, including consumer behavior and even the weather. Maryland’s law targets these practices, specifically banning the setting of higher prices based on personal data. However, some say the law should also prevent individualized discounts, which could still allow for unfair pricing tactics.
The Maryland Retailers Alliance argues that this law isn’t needed since existing consumer protection laws already address misleading pricing. Meanwhile, New York is monitoring the situation closely, with legislators recognizing the potential for tech advancements that could lead to similar issues.
Data from the Federal Trade Commission shows that online vendors often use personalized data to set prices based on a user’s location and browsing behavior. In fact, a Consumer Reports investigation revealed that Instacart sometimes charged different prices for the same grocery list, showing that pricing transparency is a significant consumer concern.
Opinions on algorithmic pricing vary. Logan Kolas from the American Consumer Institute points out that adjustments to pricing can help businesses find the right balance for demand. He believes these practices can also benefit consumers by providing lower prices to those who may be struggling financially.
The conversation around personalized pricing is gaining momentum. While Maryland has taken the lead, other states are exploring similar measures. In 2025 alone, 24 states introduced over 50 bills related to algorithmic pricing and consumer data use.
The push for regulation in pricing practices reflects a broader concern about corporate transparency in how personal data is used. As society becomes more technologically advanced, understanding and governing these practices is crucial for protecting consumers.
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