Maryland bans personalized grocery prices
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Maryland will prohibit grocery stores and delivery services from charging different prices to individual customers based on their personal data starting October 1.
Governor Wes Moore signed the Protection From Predatory Pricing Act in April, making Maryland the first state to move beyond simply requiring disclosure of such practices. The law applies to retailers with stores of at least 15,000 square feet and covers tax-exempt food items.
The Maryland law specifically targets “dynamic pricing”, setting prices based on a shopper’s personal data, and forbids using that data to increase prices for individual customers. It does allow for standard commercial practices like promotional offers, loyalty programs, and price corrections, but grocers must ensure these programs don’t rely on data that leads to individualized price increases. The statute defines “personal data” using the broad definitions within the existing Maryland Online Data Privacy Act.
Enforcement will be handled by the Maryland attorney general’s Consumer Protection Division, which must notify businesses of violations and allow 45 days for correction before taking action. While consumers cannot directly sue over violations, the state can impose penalties of up to $10,000 per violation, increasing to $25,000 for repeat offenses, and can also pursue restitution and court orders.
Connecticut and New Jersey have recently enacted similar restrictions, and legal experts suggest Maryland’s approach may serve as a model for other states.
