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When Your Grocery Bill Knows Too Much

1h ago · 8 sources · regulation

Maryland just drew a line in the digital sand.

Gov. Wes Moore signed 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 covers tax-exempt food items.

In plain English, your browsing history and purchase data should not mean you pay more for the same carton of eggs than your neighbor.

Maryland is the first state out of the gate, but more than two dozen others are considering similar legislation, including California, New York and Illinois. The pressure is not theoretical. Instacart stopped using Eversight technology to price test items after scrutiny over charging different shoppers different prices for the same products at the same time. The company also agreed to pay $60 million in refunds to settle FTC allegations tied to unlawful tactics that raised grocery costs.

The bigger tension sits inside omnichannel grocery. Retailers want personalization. Shoppers want value. Cross the line into surveillance pricing and you risk alienating the very customers you are trying to retain.

Data is still gold. But pricing powered by that data is now a regulatory minefield. The era of quiet price experiments may be ending. Transparency is becoming the new competitive advantage.

Key facts

  • Maryland Gov. Wes Moore signed the Protection from Predatory Pricing Act (HB 895), prohibiting grocers and third-party delivery services from using dynamic pricing or consumers’ personal data to set higher prices.
  • The law applies to large food retailers with 15,000 square feet or more and third-party delivery providers, but only covers tax-exempt food items.
  • More than two dozen other states are considering similar legislation, including Arizona, California, Illinois, Idaho, New Jersey, New York and Washington.
  • Instacart stopped using Eversight technology to price test items on its platform after an investigation into charging different shoppers different prices for the same products at the same time.
  • Instacart agreed to pay $60 million in refunds to settle FTC allegations that it engaged in numerous unlawful tactics that harmed shoppers and raised the cost of grocery shopping for Americans.
  • Retailers risk crossing a line between personalized promos and surveillance, which could seriously alienate a shopper.
  • 15,000 square feet
  • $60 million
  • more than two dozen

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