Maryland Becomes First U.S. State to Ban Surveillance Pricing in Grocery Stores

On April 28 2026, Governor Wes Moore signed legislation prohibiting Maryland grocery retailers and third-party delivery services from using a shopper’s personal data to set higher prices. The law bars “surveillance pricing”—the practice of adjusting product costs in real time based on location, browsing history, demographics, or other identifiers—while allowing loyalty-program discounts and promotional offers. Enforcement is vested solely in the state attorney general; individuals cannot bring private actions.

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Surveillance pricing, also called dynamic pricing, has been documented across sectors such as clothing, beauty products, home goods, and hardware. The Federal Trade Commission (FTC) began a formal investigation in early 2025 and released an initial report in January 2025 describing how retailers employ extensive personal data to vary prices for identical items purchased within minutes of each other. Federal inaction—exemplified by FTC Chair Andrew Ferguson labeling the prior administration’s report a “rush job”—has spurred state-level initiatives. Bills in Colorado, California, Massachusetts, Illinois, New Jersey, and New York are currently under consideration.

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• Wes Moore, Governor of Maryland – champion of the ban.

Maryland 1st state to ban surveillance pricing in grocery outlets

• Tom McBrien, counsel, Electronic Privacy Information Center (EPIC) – critic of industry carve-outs.

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• Lee Hepner, senior legal counsel, American Economic Liberties Project – opponent of limited enforcement provisions.

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• Consumer Reports, nonprofit consumer-advocacy group – evaluator of market practices.

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• Instacart, national grocery-delivery platform – voluntarily ceased the contested pricing technology after a prior investigation.

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• Surveillance pricing enables retailers to charge “different prices for the same items purchased around the same time” based on a shopper’s digital footprint.

Maryland 1st state to ban surveillance pricing in grocery outlets

• The FTC’s 2025 study found that companies draw on a “wide range of personal data” – from precise geolocation to browser history – to tailor prices.

Maryland 1st state to ban surveillance pricing in grocery outlets

• Maryland’s law is the first of its kind; similar proposals are pending in at least six other states.

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Governor Moore framed the measure as a protective step: he argued that technology now predicts consumer needs and willingness to pay, and that Maryland must prevent corporations from exploiting these analytics for profit. The FTC, while continuing its investigation, has not pledged new enforcement actions, and its chair has expressed skepticism about earlier findings. Instacart announced it would discontinue the pricing algorithm after the Consumer Reports probe, aligning its practices with the new Maryland statute.

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Anti-surveillance advocates warn that the law’s exemptions for loyalty programs and promotional offers could enable “indirect” price discrimination. McBrien emphasized that “exemptions allow other ways of arriving at the same outcome that are just harder for consumers to detect.” Consumer Reports praised the legislative intent but labeled the enforcement mechanisms “weak,” urging a revision to strengthen consumer protections. Hepner highlighted the absence of a private right of action, calling it “a fundamental piece of accountability,” and cautioned that the bill could become a “model” for other states that merely codifies industry-friendly loopholes.

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• The FTC’s ongoing probe suggests federal scrutiny, yet the agency has not announced concrete penalties, creating uncertainty about national versus state enforcement.

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• The law bans higher prices derived from surveillance data but does not address universal price hikes followed by individualized discounts, a loophole noted by critics but not quantified in the legislation.

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• No empirical data yet exist on how the ban will affect grocery pricing dynamics or consumer costs in Maryland.

Maryland 1st state to ban surveillance pricing in grocery outlets

• “At a time when technology can predict what we need, when we need it, when we’ll pay for it and also – when we’ll pay more for it, and at a time when we’re watching how big companies are then using these analytics against us to make record profits, Maryland is not just pushing back. Maryland is pushing forward because we are going to protect our people,” — Wes Moore, Governor of Maryland

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• “We’re excited Maryland took this step but we do have serious concerns,” — Tom McBrien, EPIC counsel

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• “The exemptions allow other ways of arriving at the same outcome that are just harder for consumers to detect.” — Tom McBrien, EPIC counsel

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• “We urge Maryland lawmakers to revisit the legislation next year to build in stronger consumer protections and remove loopholes that undermine the intent of this law,” — Consumer Reports, statement

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• “The private right of action is a fundamental piece of accountability,” — Lee Hepner, American Economic Liberties Project

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Maryland’s attorney general is expected to issue guidance on enforcement protocols in the coming months. Lawmakers have pledged to revisit the bill in 2027 to address identified loopholes. Meanwhile, legislators in Colorado, California, Massachusetts, Illinois, New Jersey, and New York are monitoring Maryland’s experience as they draft comparable bans. Federal regulators may reassess their stance if state actions demonstrate measurable consumer benefits or legal challenges.

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