Maryland becomes first state to pass bill banning ‘surveillance pricing’

Maryland is poised to become the first state in the country to ban "surveillance pricing."

The practice refers to companies using a shopper’s personal data, such as browsing history, location, or purchasing behavior, to tailor prices to individual customers.

The Protection From Predatory Pricing Act, passed this month and sent to the governor for a signature, would prohibit food retailers and third-party delivery services from using the practice.

Violations would be treated as deceptive trade practices under state law, with potential fines and lawsuits.

Maryland Gov. Wes Moore proposed that lawmakers take up the issue during the legislative session.

IN CASE YOU MISSED IT | Same groceries, same store: So why did you pay more than your neighbor?

“Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register,” Moore said in January. “Our administration is laser-focused on protecting Marylanders from skyrocketing costs. At a time when Marylanders are already stretched by the rising cost of groceries, housing and everyday necessities, we must ensure that new technologies are not used to drive up the bill for working families.”

Consumer Reports said it engaged on the bill during the legislative process. While it called Maryland’s move to address surveillance pricing “encouraging,” it warned the final version contains “loopholes” that do not fully protect consumers.

RELATED STORY | Could dynamic pricing be coming to a store near you?

The group pointed to exemptions, including applying the ban only to the use of personal data to set higher prices without establishing a baseline or standard price; exempting pricing tied to loyalty or membership programs, even if prices are higher; and exempting pricing linked to subscriptions or subscription-based services.

"We urge other state legislatures considering personalized pricing legislation to build in stronger consumer protections and avoid loopholes that weakened this bill," the organization said.