Maryland becomes first state to ban surveillance pricing in grocery stores

Maryland has become the first state in the US to ban surveillance pricing in grocery stores. Maryland’s law bans grocers and third-party delivery services from using a person’s personal data to set higher prices. Wes Moore, the governor, signed the measure into law on Tuesday. When engaging in surveillance pricing, stores rapidly change the cost of products based on consumer data, including their location, internet search history and demographics. Critics of this method – also known as dynamic pricing – say that businesses are effectively charging each person the most that they’re willing to pay. While Maryland’s new law focuses on grocery stores, the FTC has documented examples in other sectors. Bills being considered in other states may likewise regulate the practice. However, anti-surveillance advocates say the new law is riddled with industry carveouts, such as exemptions for loyalty programs, and lacks a private right of action for individuals to sue, which may make it harder to protect consumers effectively.