When Your Grocery App Knows Too Much

The era of personalized grocery pricing just hit its first real speed bump.

Maryland has passed the Protection from Predatory Pricing Act, banning grocers and third-party delivery services from using dynamic pricing or personal data to set higher prices for specific shoppers. The law applies to large food retailers with 15,000 square feet or more and delivery platforms, and it targets tax-exempt food items. More than two dozen other states, including California, New York and Illinois, are considering similar bills.

The backdrop matters. An investigation found Instacart allowed retailers to charge different shoppers different prices for the same product at the same time. Instacart has since stopped using Eversight technology for those price tests and agreed to pay $60 million in refunds to settle FTC allegations tied to unlawful tactics that raised grocery costs.

At the heart of the debate is surveillance pricing. Retailers can see browsing history, purchase behavior, income signals and location. The temptation is obvious. Charge each shopper what they are individually willing to pay.

Lawmakers are signaling that groceries are not the place for algorithmic experiments that feel like a loyalty tax. For retailers and CPG brands investing heavily in data and AI, the message is clear. Personalization in messaging and promotions is one thing. Personalized price tags are another. The compliance patchwork is coming, and it will reshape how far grocery analytics can go at the shelf.