Paying More for the Same Groceries Maryland Says No
Surveillance pricing is a form of personalized pricing that uses consumer data to set different prices for different people. Retailers can draw on location, browsing history, purchase behavior, and other signals to estimate how much someone is willing to pay. The result is not a single posted price, but a range of prices quietly tailored to each shopper.
That approach raises a basic problem. Two customers can buy the same item at the same time and pay different amounts without knowing it. In essential categories like groceries, the stakes are higher. Food costs are not optional, and even small differences in pricing can compound over time. Investigations have found that some shoppers were charged noticeably more than others for the same products, with price gaps reaching more than 20 percent in certain cases.
Maryland has become the first state to try to stop it. In April 2026, Governor Wes Moore signed the Protection From Predatory Pricing Act into law, banning grocers and third-party delivery services from using personal data to raise prices for individual shoppers. The law is set to take effect on October 1 and includes fines for violations, starting at ten thousand dollars and rising to twenty-five thousand dollars for repeat offenses.
The measure focuses on one practice. It prohibits companies from using a person's data to charge them more than another customer for the same item. Supporters say it restores a basic expectation that the price on the shelf should be the price everyone pays.
The push for the law follows growing scrutiny of pricing technology. The Federal Trade Commission has documented how companies across retail sectors use large amounts of personal data to vary prices. Lawmakers have also raised concerns about the spread of digital shelf labels and data-driven pricing tools that make rapid price changes easier to implement.
At the same time, Maryland's law leaves important gaps. It allows loyalty programs and promotional discounts to continue, even if they result in different prices for different shoppers. It also does not restrict companies from raising prices broadly and then offering targeted discounts, which critics say can lead to the same outcome as personalized price increases.
Another concern is segmentation. The law focuses on prices set for an individual, but companies can still group customers into narrow categories and price differently across those groups. Consumer advocates argue that this kind of targeting, powered by the same data, is often indistinguishable from true one-to-one pricing.
Enforcement is also limited. Only the state attorney general can bring cases under the law. Individual consumers do not have the right to sue, a point critics say weakens deterrence. Some advocacy groups have called the measure a starting point rather than a finished solution, noting that industry lobbying shaped several of the exemptions.
Even supporters acknowledge the compromise. State lawmakers have described the final version as less robust than earlier drafts, and consumer groups have urged Maryland to revisit the law and strengthen it in future sessions.
Still, the legislation marks a clear shift. It is the first time a state has directly targeted surveillance pricing in grocery stores, an area where price differences can hit households immediately. With federal action uncertain, states are beginning to set their own rules.
Similar bills are under consideration in California, Colorado, Illinois, New Jersey, and other states. Whether they adopt Maryland's framework or close its gaps will determine how far this effort goes.
For now, Maryland has set a precedent. The state has drawn a line against using personal data to quietly charge some shoppers more than others, even if the broader fight over personalized pricing is just beginning.