Maryland Bans Surveillance Pricing for Groceries and Food Delivery, First State to Act
Updated
Updated · Governing · Jun 1
Maryland Bans Surveillance Pricing for Groceries and Food Delivery, First State to Act
3 articles · Updated · Governing · Jun 1
Summary
Maryland in April barred grocery stores and food delivery companies from using personal data to charge some shoppers higher individualized prices, making it the first state to enact such a ban.
The Protection from Predatory Pricing Act was driven by concerns that electronic shelf labels and online algorithms could quickly raise prices based on data such as location, browsing behavior or other consumer traits.
The law still allows temporary price changes and retention offers, leaving some advocates dissatisfied because companies could raise baseline prices broadly and then steer individualized discounts.
Retailers say the measure is unnecessary because existing consumer-protection law already bans misleading or discriminatory pricing, while free-market critics argue algorithmic pricing can also help lower-income consumers access lower prices.
The move could become a model for other states: 24 states introduced more than 50 algorithmic-pricing bills in 2025, and scrutiny has intensified after FTC findings and Instacart price-difference investigations.
Maryland banned surveillance pricing for food, but will this just push the practice into other unregulated retail sectors?
Are 'personalized discounts' the new loophole for retailers to charge you more for groceries?
Maryland’s Protection From Predatory Pricing Act: The First Statewide Ban on Surveillance Pricing Takes Effect October 2026
Overview
Maryland will implement the Protection From Predatory Pricing Act (HB 895) on October 1, 2026, marking a major shift in consumer protection. This law is the first in the nation to explicitly ban certain personalized pricing practices, especially those using opaque AI systems and personal data to set individualized prices. Lawmakers acted due to growing discomfort with these practices, focusing the law on food retailers, merchants, and third-party delivery services. As a result, businesses must thoroughly review and possibly overhaul their pricing strategies to comply, ensuring they no longer use personal data for predatory individualized pricing.