In a move that could reshape retail practices across the country, Maryland has become the first state in the United States to explicitly ban dynamic pricing and the use of consumer personal data to set individualized prices for groceries and related services.
Governor Wes Moore introduced the Protection from Predatory Pricing Act (HB 895) in January 2026 as part of his legislative agenda to protect Marylanders’ pocketbooks and data privacy. After passing both chambers of the Maryland General Assembly, the bill now awaits the governor’s signature — something Moore has signaled he is eager to deliver, stating on April 14, “I can’t wait to sign it.”
Once signed, the law will take effect on October 1, 202, making Maryland a national pioneer in curbing what critics call “surveillance pricing” in the grocery sector.
What Exactly Is Dynamic Pricing — and Why Is It Controversial?
Dynamic pricing refers to the real-time adjustment of prices based on various factors such as demand, time of day, inventory levels, or — most concerning to lawmakers — individual consumer data. With the widespread adoption of electronic shelf labels, AI algorithms, and vast amounts of shopper data (from loyalty programs, browsing history, location, and even inferred demographics), retailers can now theoretically charge different customers different prices for the exact same item at the same moment.
Proponents argue that dynamic pricing allows for efficient market responses: lowering prices on perishable goods to reduce waste, offering targeted discounts to price-sensitive shoppers, or raising prices during peak demand to manage supply.
Critics, however, see it as predatory. They argue that when powered by personal data, it becomes a form of price discrimination that exploits vulnerabilities. A low-income shopper might unknowingly pay more for staples based on their zip code, purchase history, or even device type. Combined with the rise of AI-driven personalization, this practice raises serious concerns about fairness, transparency, and the erosion of a single, consistent market price that consumers can trust.
Governor Moore framed the issue clearly when introducing the bill: “This is not a fair market. This is a stacked deck… about profit extracted from people who are struggling to afford basic goods.”
Provisions of the Protection from Predatory Pricing Act
The final version of the bill focuses primarily on food retailers (generally stores with at least 15,000 square feet selling food for off-premises consumption) and third-party delivery service providers.
It prohibits two main practices:
– Engaging in dynamic pricing — specifically, setting personalized prices based on a consumer’s personal data.
– Using consumer personal data (or protected class data such as race, gender, or other sensitive characteristics) to set higher prices for goods or services.
The legislation also requires that grocery prices remain fixed for at least one full business day, aiming to prevent rapid intraday fluctuations that can confuse or disadvantage shoppers.
Violations will be treated as unfair, abusive, or deceptive trade practices under Maryland’s Consumer Protection Act. The Maryland Attorney General’s Office will handle enforcement, with civil penalties starting at up to $10,000 for a first offense (and higher for repeat violations). Businesses will receive notice and an opportunity to correct issues before penalties kick in.
Importantly, the bill includes some exemptions and clarifications added during the legislative process — such as allowances for loyalty program benefits and certain promotional offers — which helped reduce opposition from retail groups.
Why Maryland? The Broader Context of Data Privacy and Cost-of-Living Pressures
This legislation builds directly on Maryland’s earlier Maryland Online Data Privacy Act (MODPA) passed in 2024. By targeting the intersection of data surveillance and essential goods like food, the state is sending a strong signal: when it comes to basic necessities, personalization should not come at the expense of fairness or privacy.
Rising grocery costs have been a top concern for families nationwide. Electronic shelf labels and AI tools have made instant price changes easier than ever, raising fears that vulnerable consumers — including those in lower-income areas or with specific shopping patterns — could face systematically higher prices without realizing it.
Consumer advocacy groups, including Consumer Reports, have supported the spirit of the bill but noted that the final version includes compromises and exemptions that may limit its full protective power. On the other side, some retail associations initially opposed the measure, warning that overly broad restrictions could unintentionally eliminate beneficial tools like targeted coupons, loyalty discounts, or timely markdowns on soon-to-expire perishables.
Potential Impacts on Maryland Shoppers and Retailers
For everyday Marylanders, the law promises greater price stability and transparency at the grocery store. Shoppers should no longer worry that their loyalty app, browsing history, or demographic profile is quietly inflating the cost of milk, bread, or produce.
For retailers and delivery platforms, compliance will require adjustments by October 1, 2026. Large grocery chains and services like Instacart or DoorDash operating in the state will need to audit how they collect and use customer data in pricing decisions. Many will likely shift toward more uniform pricing strategies or ensure that any personalization stays within the boundaries of allowed promotions and loyalty programs.
Critics of the bill have raised concerns that it could reduce incentives for efficiency or limit the ability to offer personalized savings. Others argue it represents a necessary check on unchecked data-driven capitalism in an era when AI makes hyper-personalized pricing not just possible, but increasingly common.
A National Bellwether?
Maryland’s law is the first of its kind in the U.S., but it arrives amid growing scrutiny of dynamic and personalized pricing practices across industries — from airlines and ride-sharing to e-commerce and entertainment.
As more states and potentially the federal government watch how this plays out, Maryland could inspire similar legislation elsewhere. At the same time, the compromises in the final bill highlight the challenge of balancing consumer protection with business innovation and the benefits that data-driven tools can sometimes provide (such as discounts for price-sensitive households).
Governor Moore’s swift support and the bipartisan elements in the legislative process suggest this is part of a larger conversation about fairness in the digital economy, data rights, and protecting families from hidden algorithmic disadvantages.
Whether the law fully delivers on its promise of shielding consumers from “predatory” practices — or whether retailers find workarounds — will become clearer after October 1, 2026. For now, Maryland has drawn a clear line: when it comes to putting food on the table, prices should be predictable, transparent, and not secretly tailored against you.
