Maryland is drawing a hard line on how far companies can go when using artificial intelligence (AI) to set prices, approving a first-of-its-kind law that blocks grocers from charging customers different prices based on personal data.
The measure, signed by Maryland Gov. Wes Moore (D), takes effect Oct. 1 and targets what lawmakers call “surveillance pricing,” a practice where companies use a shopper’s digital footprint to decide what that person will pay for items on shelves. The law bars large grocery stores and delivery services from setting a personalized price tied to a consumer’s data, while still allowing standard discounts, taxes, and shipping adjustments.
“At a time when technology can predict what we need, when we need it, and even when we’ll pay more for it,” Moore said at the bill signing, “Maryland is pushing forward because we are going to protect our people,”
To understand what Maryland is trying to stop, it starts with how pricing has quietly changed. Dynamic pricing means the cost of a product or service can shift based on conditions like demand, inventory, or competition. Airlines, hotels, and rideshare apps have used it for years. A plane ticket jumps before a holiday. A ride costs more during rush hour. That same model is now moving into everyday retail, powered by artificial intelligence and real-time data.
But the concern now goes deeper than supply and demand. Retailers can pair pricing systems with data collected from apps, browsing history, location tracking, and past purchases. That opens the door for something different. Two people could stand in the same store and see different prices for the same item.
That is not theoretical. In one test cited in the reporting, the price of a dozen eggs varied from $3.99 to $4.79 depending on who was looking at the app, raising concerns that shoppers could end up paying hundreds more each year without realizing it.
Maryland’s law goes directly at that scenario. It bans using personal data to raise prices on individuals, while allowing traditional pricing changes tied to broader market conditions. Violations can lead to enforcement action, and consumers retain the right to sue.
The move stands alone for now. In 49 other states, dynamic pricing remains legal and is already common in industries ranging from travel to entertainment and food delivery. Still, pressure is building. Lawmakers across the country have introduced dozens of bills focused on price transparency and limits on algorithm-driven pricing, with many requiring companies to disclose when prices are set by automated systems.
For consumers, the issue is simple. Most expect to pay the same price as the person next to them. What Maryland is saying is that expectation should not depend on how much data a company has collected on you.
“I don’t have control over the price of bread or eggs or milk,” Oklahoma Democratic state Rep. Cyndi Munson, who introduced a bill that would regulate how food retailers use algorithmic pricing and ban surveillance pricing, wrote on Governing.com. “But we do have some say on how corporations are going to operate in our state.”
