MARYLAND - Governor Wes Moore announced the Protection from Predatory Pricing Act today, which limits the retail industry's usage of electronic shelf labels for dynamic pricing in Maryland grocery stores.
The legislation is fighting back against the practice where the cost of basic household goods could surge based on the time of day, the weather, or consumer data that allows stores to increase prices to get the maximum amount of profit off "the backs of consumers."
The Protection from Predatory Pricing Act requires grocery store prices to remain fixed for at least one business day and bans the use of surveillance data, which is information about a consumer's behavior or characteristics, in automated decision systems to set individualized prices. Officials say this will ensure electronic shelf labels are not used to "implement surge pricing strategies that hike costs on consumers."
Under the new law, violators would be subject to a penalty up to $10,000 for a first offense, and up to $25,000 for any more offenses.
“Dynamic pricing is predatory pricing and takes advantage of consumers at a time when many families are struggling to make ends meet,” said House Speaker Joseline Peña-Melnyk. "...Data used against consumers is a breach of public trust...”
“Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register,” said Gov. Moore. “Our Administration is laser-focused on protecting Marylanders from skyrocketing costs. At a time when Marylanders are already stretched by the rising cost of groceries, housing, and everyday necessities, we must ensure that new technologies are not used to drive up the bill for working families.”