Maryland Becomes First U.S. State to Ban “Surveillance Pricing” in Grocery Stores

Is it fair to change the price of a product based on a person’s location, demographics, or even search history? No, according to Maryland Gov. Wes Moore.

Dynamic pricing in supermarkets and grocery store is the practice of changing the price of a product based on a person’s location, demographics, or even search history. (Photo: Giant Food Facebook)

His state has become the first in the U.S. to ban the practice—also known as “dynamic pricing”—in supermarkets and grocery stores, Andrew Nusca reported for Fortune Tech.

“At a time when technology can predict what we need, when we need it, what 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 using those analytics against us to make record profits—we are going to protect our people,” Moore said.

The state’s Protection from Predatory Pricing Act (HB 895), which takes effect Oct. 1, isn’t ironclad.

While focused on groceries, it includes exemptions for loyalty programs and promotional offers. It also doesn’t stop grocers from raising prices across the board and then offering individualized discounts.

Still, it is the first piece of legislation in what could become a broader wave of regulation in the U.S. Colorado, California, Massachusetts, Illinois, and New Jersey are considering similar restrictions.