Governor Moore Announces Legislation to Protect Marylanders’ Pocketbooks, Data Privacy at the Grocery Store

“Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register,” said Gov. Moore. “Our Administration is laser-focused on protecting Marylanders from skyrocketing costs. At a time when Marylanders are already stretched by the rising cost of groceries, housing, and everyday necessities, we must ensure that new technologies are not used to drive up the bill for working families.”

The Protection from Predatory Pricing Act responds to the retail industry’s increasing adoption of electronic shelf labels, which allow stores to change prices instantly. Several major retailers have begun transitioning to the new technology to streamline operations and reduce the labor of manually updating tags. The change to electronic shelf labels creates the potential for “dynamic pricing,” where the cost of basic household goods could surge based on the time of day, the weather, or granular consumer data—allowing stores to calibrate price increases to extract maximum profits on the backs of consumers.

The Protection from Predatory Pricing Act prohibits the use of dynamic pricing by requiring grocery store prices to remain fixed for at least one business day. It also bans the use of surveillance data—information derived from observation or inference about a consumer’s behavior or characteristics—in automated decision systems to set individualized prices, ensuring that electronic shelf labels are not used to implement surge pricing strategies that hike costs on consumers.

Governor Moore’s proposal builds on the Maryland Online Data Privacy Act of 2024 by specifically targeting the intersection of data surveillance and essential goods pricing. Under the new legislation, violations would be treated as an unfair or deceptive trade practice under the Maryland Consumer Protection Act. The Office of the Attorney General would enforce the measure, with merchants subject to civil penalties of up to $10,000 for a first offense and up to $25,000 for subsequent offenses.

“Dynamic pricing is predatory pricing and takes advantage of consumers at a time when many families are struggling to make ends meet,” said House Speaker Joseline Peña-Melnyk. “The House is pleased the Governor is taking initiative to limit this practice in Maryland. Data used against  consumers is a breach of public trust and we look forward to working together.”

“Dynamic pricing is predatory pricing,” said Delegate Kriselda Valderrama. “We have no hesitation telling the marketplace that groceries are off-limits for these kinds of practices. Data used against Marylanders to create individualized grocery prices is a breach of public trust.”

“Maryland families work hard to put food on the table for their families,” said Economic Action Maryland Fund Executive Director Marceline White. “The cost of groceries is making this harder and harder to do. Grocery store chains are using shoppers’ personal data to charge different prices to individuals for the same bag of groceries. We commend Governor Moore for introducing the Protection from Predatory Pricing Act to address this practice and create a level playing field for Marylanders to shop for the same goods at the same price.”

“I am grateful to Governor Moore for recognizing this issue, especially given the rising costs of food in this country,” said BD Provisions Owner Debra Saltz. “My business is proud to have transparency with regard to pricing. All of our prices are clearly marked and don’t change depending on the weather or shopping habits of our customers. But as a consumer, I also have to shop in grocery stores that use these unfair practices. This is important legislation.”

UFCW Local 400 and UFCW Local 27 issued the following joint statement:
“The prospect of retailers using personal information such as income, race, gender, spending habits and more to charge customers different prices for the same purchase should alarm every consumer in Maryland. Being charged more for the same product just because of who you are is deeply unfair and opens the door to widespread and automated discrimination. Maryland lawmakers must take immediate action to stop this practice before it’s too late.”

“Charging different people different prices for the same product at the same store on the same day is deeply unfair,” said Jane St. Louis, a UFCW Local 400 union member and shop steward who works at Safeway in Damascus, MD. “I’ve worked in retail for over 30 years, and I can tell you that any customer would be outraged if they learned they were being charged more for the same purchase as someone else, no matter the reason. It would be even worse to find out that companies were using your personal information to charge you more than other customers. In the long run, that’s bad for customers, bad for business, bad for everybody.”