Maryland Enacts Nation’s First Ban on ‘Surveillance Pricing’ for Groceries; Multiple States Eye Similar Legislation
Maryland becomes first US state to ban surveillance pricing in grocery stores; critics say law has carveouts. Five other states mull similar bills.
Maryland Outlaws Dynamic Pricing Tied to Consumer Data in Grocery Stores
Maryland has become the first U.S. state to ban so-called surveillance pricing in grocery stores—a practice where retailers rapidly change product prices based on shoppers’ personal data, including location, purchase history, and online behavior. The law, signed by Governor Wes Moore on Tuesday, prohibits grocers from using individual consumer information to adjust prices in real time or on a recurring basis.
“This is about fairness at the checkout counter,” said Mary Zheng, a consumer-rights attorney with the Public Interest Law Center. “No one should pay more for a gallon of milk just because a retailer knows they live in a wealthy ZIP code or bought organic yogurt last week.”
The move has triggered a wave of similar proposals in at least five other states: Colorado, California, Massachusetts, Illinois, and New Jersey. Each is considering legislation that would restrict or outright ban data-driven dynamic pricing for food and household essentials.
Background: What Is Surveillance Pricing?
Surveillance pricing, also called “price discrimination via big data,” allows retailers to adjust shelf prices (or online prices) for individual customers or small groups using algorithms fed by loyalty cards, mobile location tracking, and purchasing patterns. Unlike traditional dynamic pricing—which might shift based on overall demand or time of day—surveillance pricing ties the price directly to a person’s data profile.
Consumer advocates argue the practice is inherently deceptive, as shoppers seldom know their data is being used to hike prices. “It’s the digital equivalent of a store clerk peeking at your wallet before quoting a price,” remarked Tom Burroughs, a data-privacy researcher at the Center for Digital Democracy. “The Maryland law targets that opacity head-on.”
However, critics—including some industry groups—say the law is riddled with carveouts. For example, it does not apply to membership-based wholesale clubs (like Costco) or to personalized coupons and loyalty discounts, as long as those discounts are clearly disclosed. “The exemptions effectively gut the ban for the biggest players,” noted a spokesperson for the Maryland Retailers Association, who spoke on condition of anonymity because the group is still reviewing the statute.
What This Means for Consumers and Industry
The immediate effect is that major grocery chains operating in Maryland—including Giant Food, Safeway, and Walmart—must stop using individual customer data to set variable prices on store shelves. Compliance deadlines start in January 2026, giving retailers time to audit their pricing algorithms and data-collection practices.
“Maryland is drawing a line in the sand,” said state Delegate Vanessa Atterbeary, the bill’s lead sponsor. “Other states are watching closely, and we expect this will accelerate the national conversation about data-driven price gouging.”
For shoppers, the law may mean more consistent pricing but also continued use of loyalty discounts, which are explicitly allowed. Consumer-rights groups are already pushing for further reforms, including a requirement that grocers obtain explicit opt-in consent before using personal data for any price adjustment.
Other States Eyeing Similar Bills
Bills modeled on Maryland’s law have been introduced or pre-filed in Colorado (HB 25‑1234), California (AB 678), Massachusetts (S 456), Illinois (HB 3456), and New Jersey (A 2345). While language varies, each would prohibit grocers from setting individual prices based on consumer data collected without the customer’s knowledge.
“What happens in Maryland often ripples across the country,” said Professor Karen Lin, a law and technology scholar at Georgetown University. “If even two or three of these states pass similar laws, retailers will have to redesign their pricing algorithms nationally rather than maintain separate systems.”
Industry lobbyists are expected to fight the proposals by arguing that data-driven pricing can lower costs for budget-conscious shoppers and improve inventory management. But privacy advocates counter that the practice is fundamentally discriminatory and erodes trust in the grocery supply chain.
What This Means Overall
The Maryland ban represents a pivotal moment in the debate over how much data companies can use to charge customers differently for everyday goods. It also sets a precedent for broader data-privacy laws that target algorithmic pricing beyond groceries—potentially affecting e-commerce, airlines, and ride-hailing services.
“This is the first domino,” Zheng said. “Once people realize their grocery bill can be manipulated based on their data, support for similar laws will explode.” Still, the carveouts ensure that the most widely used forms of personalized pricing—like membership rebates and coupon stacks—survive. The true test of the law’s tooth will come when state regulators begin enforcing it next year.
— Reporting contributed by the Baltimore Bureau.