*Maryland has become the first state in the U.S. to place legal limits on certain forms of dynamic pricing used by grocery retailers and delivery platforms, marking a significant step in the growing debate over data-driven pricing technology, All Recipes reports.
Gov. Wes Moore approved the Protection From Predatory Pricing Act on April 28. The measure prevents retailers from altering grocery costs using shopper information collected through data-tracking systems, an issue that has drawn increasing attention from both lawmakers and consumers.
At the bill signing ceremony, Moore said, “People deserve to know that the price that they pay is not different from the customer who walked in just before them, or different from the customer that walks in right after them.” He also stated, “People deserve to know that their data will not be used against them to charge them more.”
Also known as variable or surge pricing, the system uses automated technology to modify costs according to purchasing trends, customer activity, inventory conditions, and broader market demand. Retail chains including Walmart, Kroger, and Target have all explored tools tied to digital pricing systems in recent years.
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The Maryland law applies to grocery businesses larger than 15,000 square feet that sell tax-exempt food items. Delivery companies such as Instacart and DoorDash are included under the new restrictions. Businesses outside that category may still use the technology, but they must disclose when automated systems and customer data influence pricing decisions.
The legislation is set to take effect on Oct. 1, 2026. Maryland is currently the only state to enact such a policy, though similar proposals have already surfaced in California and New York.
Meanwhile, Walmart has said it does not plan to introduce dynamic pricing despite recently obtaining patents connected to digital shelf labels and AI-supported pricing technology. The retailer maintains that its pricing updates are employee-reviewed and remain consistent for all shoppers regardless of demand or shopping time.
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