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

Maryland has drawn a sharp line in the sand against one of the most controversial pricing practices of the AI era. On April 28, 2026, Governor Wes Moore signed the Protection from Predatory Pricing Act (HB 895), making Maryland the first state in the nation to outlaw “surveillance pricing” — the use of personal consumer data to charge higher prices for the same groceries.

Maryland Becomes First U.S. State to Ban “Surveillance Pricing” in Grocery Stores The new law, which takes effect on October 1, 2026, prohibits grocery retailers (stores 15,000 square feet or larger with substantial food operations) and third-party delivery services from using geolocation, search history, demographics, or any other personal data to set individualized higher prices.

The goal is straightforward: ensure that the price on the shelf or app is the same for everyone walking through the door or placing an order.

The practice has been under growing scrutiny. A Consumer Reports investigation late last year revealed that Instacart’s AI-powered pricing experiments were causing identical items to cost different customers up to 23 % more depending on who was ordering.

The revelations prompted Instacart to announce it would end such tests and publicly declare support for Maryland’s legislation. “Instacart has never engaged in that practice,” the company stated, “and we support this legislation’s core principle: that prices should never be personalized based on a customer’s individual data.”

Maryland Becomes First U.S. State to Ban “Surveillance Pricing” in Grocery Stores Similar bills are now advancing in Colorado, California, Massachusetts, Illinois, and New Jersey. At the federal level, the FTC under the Biden administration had begun investigating surveillance pricing across retail, but with the change in administration, meaningful nationwide action appears unlikely in the near term. Consumer advocates say the burden has shifted to the states.

Yet even Maryland’s landmark law comes with notable limitations that critics are already highlighting. The ban applies only to price increases based on personal data — not to price decreases. Loyalty programs and promotional offers remain explicitly exempt.

That creates what Tom McBrien of the Electronic Privacy Information Center calls a significant loophole: retailers can simply raise the base price for everyone and then offer targeted discounts to price-sensitive customers. “The economic result is the same,” McBrien noted, “but it’s much harder for consumers to detect.”

Consumer Reports, while welcoming the law’s intent, has urged lawmakers to return next session to close the gaps and add stronger enforcement mechanisms. Currently, only the Maryland Attorney General can bring lawsuits; there is no private right of action for individual consumers.

Maryland Becomes First U.S. State to Ban “Surveillance Pricing” in Grocery Stores Governor Moore framed the bill as a direct pushback against corporate data practices. “At a time when technology can predict what we need, when we’ll pay for it — and when we’ll pay more for it — Maryland is pushing forward because we are going to protect our people,” he said at the signing ceremony.

The legislation arrives at a moment when dynamic and personalized pricing has spread far beyond groceries into clothing, electronics, travel, and even home goods. Proponents argue it simply lets companies charge each customer “what they’re willing to pay,” maximizing efficiency and profits. Critics counter that in essential categories like food it amounts to digital price discrimination that quietly extracts more money from those least able to afford it.

Maryland’s move is modest, imperfect, and — by design — limited in scope. But it is the first concrete legislative victory against a practice that many Americans only recently learned existed. Whether other states follow through with stronger, loophole-free versions will determine if this becomes a meaningful national shift or remains a symbolic state-level experiment.

For now, Maryland shoppers will be the first in the country to test whether the law actually delivers the transparent, consistent pricing it promises — or whether the loopholes prove wide enough for the old practices to slip right back in.