Maryland becomes the first state to ban artificial intelligence-driven price increases at grocery stores and delivery services starting in October. The law prohibits retailers from using consumer data to charge different prices to different shoppers based on their purchase history, location, or other personal information.
Grocery chains and third-party delivery platforms like DoorDash and Instacart cannot deploy algorithms that identify which customers will pay more for the same products. The ban applies to all food retailers operating in the state, regardless of size.
The legislation responds to consumer complaints about hidden price discrimination. Major grocers have faced public backlash over suspected dynamic pricing practices, where companies adjust prices in real time based on demand and customer profiles. Walmart and other chains have denied using such tactics, but the concern prompted Maryland lawmakers to act.
The law carries penalties for violations but does not explicitly state fines. Enforcement falls to the state attorney general's office.
This move sets a precedent for other states considering similar restrictions. Grocery affordability ranks as a top concern for American households facing high food costs. Maryland's approach targets the technology enabling personalized pricing rather than price levels themselves.