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**When Your Grocery App Knows Your Salary**

2h ago · 7 sources · regulation

Maryland just drew a line in the digital sand.

Gov. Wes Moore signed the Protection from Predatory Pricing Act, prohibiting grocers and third-party delivery services from using personal data to charge higher prices to specific shoppers. The law applies to large food retailers with 15,000 square feet or more and third-party delivery providers, and it covers tax-exempt food items.

What is still allowed? Discounts tied to loyalty or subscription programs. Promotional pricing. Adjustments based on taxes and shipping. Publicly available information is also fair game.

The backdrop matters. An investigation by Consumer Reports and Groundwork Collaborative examined Instacart’s use of AI that let retailers charge different shoppers different prices for the same products at the same time. Instacart stopped using Eversight technology for price testing after the report and agreed to pay $60 million in refunds to settle FTC allegations.

Maryland is not alone. More than two dozen states are considering similar legislation, and several others have already advanced bills.

Why it matters: personalized pricing in grocery just moved from clever math to political risk. Consumer advocates argue surveillance pricing uses browsing behavior, location and income to charge shoppers as much as they are willing to pay. Lawmakers are listening.

Quick take: retailers can still personalize offers. They just cannot personalize the shelf price based on who you are. Expect sharper focus on loyalty perks and promos, and a lot more scrutiny on how data shapes the cart.

Key facts

  • Maryland Gov. Wes Moore signed the Protection from Predatory Pricing Act (HB 895), prohibiting grocers and third-party delivery services from using consumers’ personal data to set higher prices for specific consumers.
  • The Maryland law applies to large food retailers with 15,000 square feet or more and third-party delivery providers, and covers tax-exempt food items.
  • The law excludes publicly available information and does not apply to discounts from loyalty or subscription programs, promotional pricing or price adjustments based on taxes and shipping.
  • More than two dozen other states, including Arizona, California, Illinois, Idaho, New Jersey, New York and Washington, are considering similar legislation, while bills in Colorado, Connecticut and Vermont have passed the first chamber.
  • Maryland defines dynamic pricing as setting a price for a specific consumer based on their personal data, while other states define related terms such as algorithmic pricing and surveillance pricing differently.
  • The law follows an investigation by Consumer Reports and Groundwork Collaborative into Instacart’s use of AI to allow retailers to charge different shoppers different prices for the same products at the same time.
  • Instacart stopped using Eversight technology to price test items on its platform after the report and agreed to pay $60 million in refunds to settle FTC allegations that it engaged in unlawful tactics that harmed shoppers.
  • Consumer advocates argue that surveillance pricing allows companies to use detailed shopper data, such as browsing behavior, location and income, to charge individuals as much as they are willing to pay.
  • A recent Spins webinar noted that some states are pursuing legislative action against retailers using data to set prices based on consumers’ shopping habits, reflecting broader concern about personalized grocery pricing.
  • 15,000 square feet
  • $60 million
  • More than two dozen states

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