Maryland bans AI grocery dynamic pricing
- Maryland lawmakers passed the Protection From Predatory Pricing Act, barring grocery stores and third-party food delivery services from raising prices with personal data. - The bill makes violations an unfair trade practice, takes effect October 1, 2026, and lets Maryland’s attorney general pursue civil penalties. - The measure targets “surveillance pricing” as stores adopt electronic shelf labels and personalized marketing tools. (governor.maryland.gov)
Maryland passed a bill to stop grocery stores and food delivery services from using personal data to charge different customers different prices. (mgaleg.maryland.gov 1) (mgaleg.maryland.gov 2) The measure is House Bill 895 and Senate Bill 387, called the Protection From Predatory Pricing Act. It passed the General Assembly in April and is set to take effect on October 1, 2026. (mgaleg.maryland.gov) (technologylaw.fkks.com) The law bars a food retailer or third-party food delivery provider from using “dynamic pricing” to increase a price for a specific consumer. It also bars using personal data to increase a price for one consumer or a group of consumers. (mgaleg.maryland.gov) In plain terms, the state is targeting “surveillance pricing” — software that can combine purchase history, location, browsing, or observed behavior to decide who pays more. Maryland’s bill was written around groceries and food delivery, not all retail. (governor.maryland.gov) (mgaleg.maryland.gov) Governor Wes Moore rolled out the proposal on January 20, 2026, saying grocery prices should stay fixed for at least one business day. His office tied the push to the spread of electronic shelf labels, which let stores update prices instantly. (governor.maryland.gov) Maryland also wrote the bill to cover discrimination concerns. The legislation says covered companies may not use protected-class data in offers or sales if that data has the effect of denying an accommodation, advantage, or privilege provided to others. (mgaleg.maryland.gov) Enforcement runs through the Maryland Consumer Protection Act. Violations are treated as unfair, abusive, or deceptive trade practices, with the attorney general empowered to enforce the law and civil penalties available under existing state rules. (mgaleg.maryland.gov) (governor.maryland.gov) Retail groups pushed back during the debate. Cailey Locklair of the Maryland Retailers Alliance told lawmakers retailers support limits on using data to raise prices, but said the bill could also restrict targeted discounts and loyalty-style promotions. (marylandmatters.org) Supporters argued the state should act before the practice becomes common in food shopping. The result is a narrow Maryland rule aimed at one basic idea: the shelf price should not depend on who you are. (marylandmatters.org) (governor.maryland.gov)
