Maryland is now the first US state to ban algorithmic dynamic pricing in grocery retail. Governor Wes Moore signed the Protection From Predatory Pricing Act on April 28, 2026, and because the legislature designated it an emergency measure, the law took effect immediately. It prohibits food retailers operating 15,000 or more square feet1 from varying prices within a single business day based on demand or using surveillance and personal data to set individualized prices. Loyalty programs and promotional discounts survive; AI-driven personalized base prices do not.
What the Law Bans
The enrolled text of HB 8951 defines the core prohibition plainly: food retailers with at least 15,000 square feet of retail space may not use “dynamic pricing,” meaning price changes within a single business day based on demand, including through AI. They also may not use “surveillance pricing,” which the bill defines as setting prices based on personal data or surveillance of a consumer. The threshold applies to stores selling tax-exempt food items, so the law lands on supermarket chains and big-box stores while leaving corner stores and independent grocers untouched.
The same prohibitions reach third-party food delivery services through the companion bill SB 3872, which passed the Senate 31-12 on March 23. That means platforms like DoorDash, Uber Eats, and Instacart fall under the same restrictions when delivering food in Maryland.
Not everything algorithmic is outlawed. The bill explicitly carves out promotional pricing, temporary discounts, and loyalty program benefits. A retailer can still offer a digital coupon based on your purchase history; it cannot use that history to change the shelf price of milk before you reach the checkout.
Penalties and Enforcement
Despite reports of steep fines, the Maryland Consumer Protection Act2 provisions referenced in the bill set penalties at up to $1,000 per violation or imprisonment for up to one year. There is no $25,000 penalty tier2. Enforcement sits with the Maryland Attorney General’s Consumer Protection Division, not with private plaintiffs. The practical effect is that pressure on chains comes through state investigation and referral, not class-action litigation.
The Legislative Path
HB 8953 was introduced on February 4, reported favorably by the House Economic Matters Committee on March 20, and passed the House 96-32 on March 21. The cross-filed SB 3872 cleared the Senate 31-12 two days later. Speaker Adams and 47 delegates sponsored the House version, giving it the “By Request - Administration” label. Governor Moore signed it at a bill-signing ceremony on April 284, alongside voting-rights and foster-care legislation.
What Happens Next
Maryland’s law is the first of its kind, but claims that seven other states are drafting identical bills remain unverified. Legislative interest in algorithmic pricing exists nationally, though no corroborating sources confirm a specific count or list of states. For retailers running multi-state personalized-pricing pilots, the immediate question is whether to treat Maryland as a one-off exemption or to begin segmenting pricing infrastructure by state. The latter is harder than it sounds: most dynamic-pricing systems were built for e-commerce, where geofencing is straightforward, not for physical shelf tags that sync with regional demand signals.
The shift of algorithmic pricing into the consumer-protection realm also changes the enforcement venue. Violations are treated as unfair or deceptive trade practices under the Maryland Consumer Protection Act2, which the Attorney General can pursue without the procedural delays of antitrust litigation. For a retailer running dynamic pricing across dozens of states, Maryland creates a compliance island: a single jurisdiction where the default assumption that demand-based pricing is legal no longer holds.
Frequently Asked Questions
Does the surveillance pricing ban apply to non-food merchandise at qualifying retailers?
Yes. The dynamic pricing prohibition targets food retailers specifically, but the bill’s surveillance pricing provisions extend to consumer goods and services more broadly. A big-box store exceeding the 15,000-square-foot threshold could not use personal data to set individualized prices on electronics, household goods, or other non-food categories either.
Did retailers get any transition period to turn off dynamic pricing systems?
No. Because the legislature designated the bill an emergency measure, it bypassed Maryland’s standard October 1 effective date that applies to most laws passed in the 2026 Regular Session. Retailers running demand-based pricing on the morning of April 28 were non-compliant by that afternoon.
Is the 15,000 sq ft threshold based on individual store size or total chain square footage?
It is per-store. The bill defines ‘food retailer’ by the retail space of each individual location selling tax-exempt food items under Tax-General §11-206. A chain operating 50 locations under 15,000 square feet each is exempt, while a single big-box location exceeding the threshold is covered.
How does Maryland’s approach differ from the FTC’s federal algorithmic pricing efforts?
The FTC’s ongoing surveillance pricing inquiry has centered on transparency and disclosure obligations — requiring companies to tell consumers when algorithms set their prices. Maryland skips that framework entirely, treating demand-based grocery pricing as a per se unfair trade practice and banning it outright with no disclosure or opt-out path that could make it permissible.