ANNAPOLIS, Md. — Maryland has become the nation's first State to impose a ban on what's known as "dynamic pricing."
Lawmakers describe it as price manipulation driven by surveilling the personal information of customers.
Wes Moore officially signed the 'Protection From Predatory Pricing Act' into law on Tuesday.
According to AARP, grocery stores use AI to instantly adjust prices based on real-time trends.
“This new law provides proactive safeguards to make sure pricing is fair, transparent, and respects our privacy," AARP says. "It helps protect consumers, especially those who are older or on fixed incomes, from being taken advantage of in ways they may not even realize.”
Not all are on board with the new law, however.
Senate Republicans call it a solution in search of a problem.
“Marylanders are struggling with rising utility bills, housing costs, and taxes, yet the Governor chose to sign legislation targeting a pricing practice that grocery stores themselves told us isn’t happening," said Senate Minority Leader Steve Hershey. "If we’re serious about affordability, we should be focused on energy costs, taxes, and housing — the expenses families actually feel every month. Instead, this bill creates the appearance of action without delivering real savings."
The Maryland Retailers Alliance also issued a statement pushing back on the bill, accusing the Moore administration of creating confusion about the new law.
"In describing the issue, Governor Moore stated that two individuals could be charged different prices for the same item based on personal data. This characterization is inaccurate under current Maryland law.
Such practices are already prohibited under the Maryland Consumer Protection Act, which clearly defines unfair or deceptive trade practices including misleading or discriminatory pricing as illegal. Any retailer engaging in the conduct described would already be subject to pre-existing enforcement action.
Importantly, the newly enacted “Protection from Predatory Pricing Act” does not address or prohibit individualized grocery pricing as described. Suggesting otherwise misrepresents both the scope and the legal effect of the legislation.
Grocery stores also operate within one of the most competitive sectors of the economy, typically sustaining profit margins of just 1–3 percent. This highly competitive environment benefits consumers by keeping prices low and limiting the ability of any single retailer to artificially inflate prices without losing business. The notion that widespread, individualized price gouging could occur in such a market is inconsistent with the economic realities of the industry.
Further, even prior to this law the Maryland Office of the Attorney General has no record of substantiated complaints indicating a pattern of grocery stores engaging in unlawful “predatory pricing increases” of the type described.
It is also important to distinguish where individualized or dynamic pricing models are more commonly used. Industries such as third-party delivery platforms, hotels, rideshare apps, and airlines have long relied on variable pricing based on demand, timing, and consumer data. These sectors, unlike traditional grocery retail, are actually where such pricing practices are most prevalent and where policy discussions would be more appropriately focused.
Accurate public communication about consumer protection laws is essential. Maryland residents deserve clarity about their rights and confidence that existing laws already safeguard them from unfair and deceptive practices.
We urge public officials to ensure that statements regarding consumer protection and pricing practices reflect the law as written and enforced."
