Legislation introduced in Maryland to prevent dynamic grocery store pricing

Maryland leaders introduced legislation Tuesday that would prevent dynamic, surveillance data-driven grocery store pricing.

It comes as the retail industry increases its use of electronic shelf labels that can change the price of items instantly. 

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

The Protection from Predatory Pricing Act would protect residents from "unpredictable price spikes" that can make grocery bills more expensive, the governor said. 

"Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register," Gov. Wes Moore said in a statement. "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."

Combatting automated price gouging 

According to the governor, the legislation was introduced in response to the increased use of electronic shelf labels and dynamic pricing. 

In June 2024, Walmart announced that it would begin using digital pricing technology, but said it would not use the automated labels for dynamic or surge pricing. Fast food chain Wendy's faced backlash after announcing a similar move in February 2024. 

Maryland's proposed Protection from Predatory Pricing Act would prohibit the use of dynamic pricing across the state by requiring grocery stores to keep prices fixed for at least one business day. 

The measure would also ban the use of surveillance data in automated pricing systems, with the goal of preventing surge pricing strategies. 

The legislation would build on the Maryland Online Data Privacy Act of 2024, which targets issues related to data surveillance and retail pricing, according to the governor's office. 

If the measure passes, violators would face penalties under the Maryland Consumer Protection Act, including an up to $10,000 fine for a first offense and a $25,000 fine for any following offenses.