Maryland’s Personalized Pricing Ban Marks Shift From Disclosure to Prohibition
Maryland will become the first state to put an outright ban on certain personalized grocery prices into effect Oct. 1, moving beyond the disclosure requirements that have defined much of the early state response to algorithmic pricing. But it may not be the last. Maryland Gov. Wes Moore signed the Protection From Predatory Pricing Act […] The post Maryland’s Personalized Pricing Ban Marks Shift…
Maryland becomes the first state to ban certain personalized grocery prices as of October 1, transitioning from disclosure requirements to outright prohibition. Governor Wes Moore signed the Protection From Predatory Pricing Act in April, prompting other states like Connecticut and New Jersey to enact similar restrictions. Maryland's law targets higher prices for tax-exempt food, based on personal data, for retailers over 15,000 square feet and third-party delivery services.
It prohibits dynamic pricing and using personal data to set higher prices for consumers. The law, derived from the Maryland Online Data Privacy Act, defines personal data broadly and includes exceptions for promotional offers, loyalty programs, location-based costs, and price corrections. Enforcement falls to the Maryland attorney general's Consumer Protection Division, with fines up to $25,000 for repeat violations and no private right of action.
The absence of private action leaves companies vulnerable to potential scrutiny for both charging methods and tracking technologies. Maryland's separate disclosure rule for non-food sectors highlights policymakers' treatment of food prices differently. National companies should map pricing inputs, test loyalty benefits, review vendor data inputs, and coordinate with privacy counsel, as the varied state approaches make a single disclosure strategy uncertain.
Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
