This State Will Become the First to Ban Surveillance Pricing

Maryland is set to outlaw surveillance pricing in the state after both chambers of the legislature approved the measure.

Gov. Wes Moore is expected to sign the law, called the Protection from Predatory Pricing Act, which would take effect on October 1, 2026.

This bill would make Maryland the first state to explicitly ban surveillance pricing for grocery shoppers, NPR reported. The state is now at the center of a national debate over how retailers can employ data-driven pricing.

Today, Maryland will become the first state in the country to ban surveillance pricing in our supermarkets and grocery stores.

We will also prohibit election methods that dilute the votes of protected classes and create a State Foster Youth Ombudsman. https://t.co/ttQuXhccc5
— Governor Wes Moore (@GovWesMoore) April 28, 2026

State lawmakers argue that the bill is meant for consumer protection and privacy. It aims to stop grocery companies from quietly charging people different prices.

Imagine going to your favorite grocery store and buying your usual food and supplies. Then you noticed you’re getting charged more than the person in front of you in line. This is how surveillance pricing works.

Companies gather data on various shoppers including location, purchase history, and other online behavior. It feeds this data into algorithms that adjust prices in real time so one customer checking out in the same store or on the same app might pay more than another for the exact same product.

Consumer Reports noted that this type of system raises concerns about companies using their knowledge about customers to identify which shoppers are likely to be able to afford higher prices and then quietly charge them more for each product. The companies using this method don’t inform customers that they are being charged more or less than others.

Maryland’s law prohibits grocery retailers and certain third-party apps from using surveillance data such as purchase history and other personal information to charge different prices for different customers.

Surveillance pricing is real threat to Americans, but unfortunately the Maryland bill has been gutted by industry friendly language, massive loopholes, and a ban on private rights of action.

Here's the reality👇 https://t.co/TRyvqZPji7 pic.twitter.com/fr8BlJBlpw
— American Economic Liberties Project (@econliberties) April 28, 2026

Those who violate the law could face fines of up to $10,000 for a first violation and up to $25,000 for repeat offenses. The legislation contains exceptions for loyalty, membership, and subscription programs.

The controversy over this practice goes far beyond Maryland. Supporters of the law argue that people should not have to wonder whether an invisible algorithm is charging them more than another when they are purchasing necessities. They say basing prices on personal data is a violation of privacy.

Critics of the practice also worry that allowing companies to charge different prices based on data could worsen inequalities — especially if low-income or less tech-savvy shoppers end up being targeted for higher pricing.

Conversely, some have warned that the law could prevent companies from experimenting with pricing that might actually benefit certain customers, including those in a low income bracket. They argue that lawmakers run the risk of overregulating a technology that most don’t understand.