Maryland Pioneers Bill Banning ‘Surveillance Pricing’

Maryland is on track to be the first state in the U.S. to outlaw “surveillance pricing.” This practice involves retailers manipulating prices based on individual customers’ personal data, including browsing history and purchase behavior.

Protection From Predatory Pricing Act

The Maryland legislature recently passed the Protection From Predatory Pricing Act. It has been forwarded to Governor Wes Moore for his approval.

• Purpose: To prohibit food retailers and delivery services from using personalized data to set prices.
• Consequences: Violations would be classified as deceptive trade practices, leading to fines and potential lawsuits.

Governor’s Initiative

Governor Wes Moore advocated for this legislation during the legislative session. He emphasized the importance of price transparency for consumers. “Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register,” he stated.

As many Maryland residents face rising costs for essentials like groceries and housing, the governor asserted that protecting families from unfair pricing practices is critical.

Consumer Opinions and Concerns

Consumer Reports engaged with lawmakers throughout the bill’s legislative process. The organization found Maryland’s effort to combat surveillance pricing encouraging but expressed concern over potential loopholes in the law.

Identified Loopholes

The final version of the bill includes several exemptions:

• Excludes situations where personal data is used to set higher prices without a clear baseline.
• Allows pricing associated with loyalty or membership programs, even if these prices are elevated.
• Exempts subscription-based services connected to pricing adjustments.

Consumer Reports urges other states considering similar legislation to integrate stronger protections. This ensures that loopholes do not undermine consumer safeguards.

As Maryland leads this initiative, it sets a precedent for other states to follow in combating unfair pricing practices linked to personal data. The focus remains on ensuring transparency and fairness in pricing for all consumers.