New Maryland law aims to prevent instant grocery price changes in stores

One of Maryland's new laws prohibits dynamic, real-time and surveillance data-driven grocery store pricing.

The measure, HB0895, took effect on Thursday. It covers food retailers as well as third-party delivery service providers. 

The law aims to protect consumers from ever-changing grocery prices at a time of rising inflation across numerous products, including food. 

Dynamic pricing allows stores to potentially change the cost of items based on demand, weather, time of day or customer data. 

It follows changes in the industry that have led several large retailers to increase the use of electronic shelf labels that can instantly change item prices, sometimes throughout the same day.

When the measure was introduced in January, Maryland Gov. Wes Moore said it aimed to protect residents from "unpredictable price spikes" that can make consumers pay more for groceries. 

"Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register," Moore said. "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 law requires grocery stores to keep prices fixed for at least one business day. The measure also bans the use of surveillance data in automated pricing systems, with the goal of preventing surge pricing strategies. 

The measure builds on the Maryland Online Data Privacy Act of 2024, which targets issues related to data surveillance and retail pricing, the governor's office said. 

Violators of the law face penalties under the Maryland Consumer Protection Act, including up to $10,000 fine for a first offense and a $25,000 fine for any subsequent offenses.