Maryland Bans Stores From Charging More Based on Your Data

Imagine walking into a grocery store where the person next to you pays less for the same milk because an algorithm decided you can afford more. Maryland just said no to that future.

Governor Wes Moore will sign the Protection from Predatory Pricing Act into law, making Maryland the first state to ban surveillance pricing in retail stores. The practice uses your personal data like shopping habits, income level, and even ethnicity to charge different prices to different people at the same time.

The law targets digital price tags that some major retailers like Walmart have started adopting. These electronic labels can change prices instantly using predictive technology, potentially hitting working families with higher costs when they're already struggling with rising grocery bills.

Under the new rules taking effect October 2026, grocery stores must keep prices fixed for at least one business day. Retailers cannot use surveillance data to set individualized prices, and violations count as unfair trade practices with fines up to $10,000 for first offenses.

Consumer Reports discovered just how invasive this data collection has become. One Kroger shopper in Oregon requested their personal profile under state privacy law and received 62 pages of information, most of it incorrect. Stores track how often you search for items, whether you live near competitors, your dietary needs, family size, and more.

The data abuse extends beyond physical stores. Consumer Reports investigated Instacart last December and found shoppers paying up to 23% more for identical products from the same store at the same time. The price differences could cost families over $1,200 annually. Instacart ended the program shortly after the investigation went public.

The Ripple Effect spreads far beyond Maryland's borders. California, Colorado, Illinois, New Jersey, New York, and other states are now considering similar bans on surveillance pricing. Consumer advocates hope these states will create even stronger protections without the loopholes that weakened Maryland's version, like exemptions for loyalty programs that can actually charge higher prices than standard rates.

While Consumer Reports notes the enforcement could be stronger (only the Attorney General can sue, and companies get 45 days to fix violations), this law represents the first major legislative pushback against algorithmic price discrimination.

Fair prices for everyone just became Maryland law.