Governor Moore Proposes Bill to Shield Marylanders from Predatory Grocery Pricing Tactics

Maryland Governor Wes Moore has put forth new legislation aimed at protecting consumers from escalating grocery costs, as outlined in a recent announcement from the Governor’s office. The proposed “Protection from Predatory Pricing Act” seeks to prevent grocery stores from employing dynamic pricing strategies and utilizing consumer surveillance data to determine individualized prices. This initiative is designed to safeguard Maryland residents from unpredictable price fluctuations and invasive data practices that could lead to higher grocery bills.

The legislation is a direct response to the increasing integration of electronic shelf labels in retail environments. These advanced labels allow for immediate price adjustments, a capability that has led to concerns about “dynamic pricing.” This practice could enable grocery stores to alter the cost of essential items based on factors such as the time of day, weather conditions, or specific consumer data, potentially maximizing profits at the expense of shoppers. Governor Moore stated that Marylanders should be confident that the price displayed for an item is the price they will pay at checkout, especially at a time when many households are already struggling with the rising costs of everyday necessities.

The “Protection from Predatory Pricing Act” mandates that prices displayed on grocery store shelves must remain consistent for at least one full business day. Furthermore, it prohibits the use of surveillance data—information gathered through observation or inference about a shopper’s habits or traits—in automated systems to set personalized prices. This aims to ensure that electronic shelf labels are not used to implement surge pricing models that could inflate costs for consumers. This proposed law builds upon the Maryland Online Data Privacy Act of 2024 by specifically addressing the intersection of data collection and the pricing of essential goods.

Enforcement of this legislation would fall under the purview of the Office of the Attorney General. Violations would be treated as unfair or deceptive trade practices under the Maryland Consumer Protection Act. Merchants found to be in violation could face civil penalties, with a first offense incurring a fine of up to $10,000 and subsequent offenses potentially reaching $25,000. This measure aims to create a more equitable shopping experience for all Marylanders, ensuring that the price of groceries is not subject to arbitrary changes or discriminatory individual pricing schemes.

Article by Mel Anara, based upon information from the Office of Governor Wes Moore

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