Maryland has become the first state in the United States to ban surveillance pricing in grocery stores, a practice where retailers use personal data to set individualized prices. Governor Wes Moore signed the measure into law on Tuesday, marking a significant step in consumer protection.
What is Surveillance Pricing?
Surveillance pricing, also known as dynamic pricing, involves stores rapidly changing product costs based on consumer data such as location, internet search history, and demographics. This means different buyers may pay different prices for the same items purchased around the same time. Critics argue that businesses effectively charge each person the maximum they are willing to pay.
Maryland's New Law
The law bans grocers and third-party delivery services from using personal data to set higher prices. Governor Moore emphasized the need for action: "At a time when technology can predict what we need, when we need it, when we'll pay for it and also – when we'll pay more for it, and at a time when we're watching how big companies are then using these analytics against us to make record profits, Maryland is not just pushing back. Maryland is pushing forward because we are going to protect our people."
While the law focuses on grocery store chains, the Federal Trade Commission (FTC) has documented surveillance pricing in other retail sectors including clothing, beauty products, home goods, and hardware. Consumer groups stress the urgency for grocery stores due to their impact on affordable food access.
National Context
Similar bills are being considered in Colorado, California, Massachusetts, Illinois, and New Jersey. The federal government has also investigated the practice; under the Biden administration, the FTC opened an inquiry and published findings in January 2025 showing companies use extensive personal data for variable pricing. However, current FTC Chair Andrew Ferguson characterized the previous report as a rush job, suggesting limited federal action. Tom McBrien, counsel at the Electronic Privacy Information Center (Epic), notes that states like Maryland must act in the face of federal inaction.
Criticisms and Loopholes
Anti-surveillance advocates welcome Maryland's initiative but express serious concerns about exemptions inserted through industry lobbying. The law includes exceptions for loyalty programs and promotional offers. While it bans raising prices via surveillance pricing, it does not address price reductions. McBrien explains: "The exemptions allow other ways of arriving at the same outcome that are just harder for consumers to detect." For instance, a company could raise base prices for everyone and then offer individualized discounts, effectively achieving the same result.
Consumer Reports, which investigated Instacart's pricing, praised the focus but criticized "weak enforcement provisions." The non-profit urged lawmakers to revisit the legislation to strengthen consumer protections and remove loopholes. Instacart announced it would stop using technology allowing differential pricing after a Consumer Reports investigation last year.
Enforcement Concerns
The harshest critics argue the law not only lacks enforcement but erodes existing rights. A key provision allows only the state's attorney general to enforce the law, not individuals. Lee Hepner, senior legal counsel at the American Economic Liberties Project, states: "The private right of action is a fundamental piece of accountability. A meaningful threat of enforcement is the only effective deterrent to violating the law." He warns that other states might replicate Maryland's bill as a model, calling it "an industry-written permission slip to engage in ongoing discrimination."
