Maryland Enacts First-of-its-Kind Ban on Surveillance Pricing for Grocery Sales
Maryland Enacts First-of-its-Kind Ban on Surveillance Pricing for Grocery Sales
Publish Date: 2026-05-06 15:01:00
Source Domain: www.hunton.com
On April 28, 2026, Maryland Governor Wes Moore signed into law House Bill 895, the Protection From Predatory Pricing Act (the “Act”), which regulates certain personalized pricing practices used by grocery stores and grocery delivery services. Notably, the Act places substantive limits on how covered businesses may use consumers’ personal data in setting food prices and on certain uses of personal data of members of legally protected classes.
The Act takes effect on October 1, 2026.
Scope of the Act
The Act applies to “food retailers” and “third-party delivery service providers.” A “food retailer” is defined as a merchant operating a business establishment with at least 15,000 square feet that sells food exempt from Maryland sales and use tax under Tax-General § 11-206(c) (i.e., grocery stores). A “third-party delivery service provider” refers to a business that, as a service to consumers, arranges for the delivery of food that qualifies for exemption from sales and use tax under the same provision.
Prohibition on Dynamic Pricing
The Act prohibits food retailers and third-party delivery service providers from using dynamic pricing to set the price of groceries, or to set a higher price for groceries for specific consumers. “Dynamic pricing” means “offering or setting a personalized price for a good or service that is specific to a consumer based on the consumer’s personal data, regardless of whether the seller collected or purchased the personal data.” (The Act incorporates the Maryland Online Data Privacy Act’s definition of “personal data,” meaning information linked or reasonably linkable to an identified or identifiable consumer.)
The Act separately prohibits using the personal data of members of legally protected classes to offer, advertise, or sell consumer goods or services where such use results in a consumer being denied or withheld an accommodation, advantage, or privilege provided to others.
Key Exceptions
The…
