Maryland Implements New Law Prohibiting Personalized Grocery Pricing Based on Consumer Data
Maryland is set to enact the Protection From Predatory Pricing Act on October 1, a new law designed to safeguard consumers from personalized grocery pricing. This legislation prohibits covered grocery retailers and third-party delivery services from utilizing a customer's personal data to charge them higher prices for most tax-exempt groceries. Personalized pricing, also known as surveillance-based or dynamic pricing, involves setting individual prices for consumers based on collected personal data, which can include location, browsing history, and shopping activity. The law applies to grocery stores exceeding 15,000 square feet that sell tax-exempt food and to third-party services facilitating the delivery of such groceries. It does not, however, cover prepared food for immediate consumption or restaurant meals. The Maryland General Assembly's analysis highlighted that retailers could use various online behaviors, such as mouse movements or items left in digital carts, to establish individualized prices. ...