Maryland Governor Wes Moore signed the Protection From Predatory Pricing Act in April. The law prohibits food retailers with establishments of at least 15,000 square feet, as well as third-party delivery services, from using personal data to set higher prices for tax-exempt food. The statute defines personal data according to the Maryland Online Data Privacy Act, covering any information linked or linkable to a specific consumer.
The legislation bans dynamic pricing that targets individuals based on personal data. It also restricts the use of protected-class data if such use denies a consumer an advantage available to others. However, the law allows for ordinary commercial practices, including loyalty programs, subscriptions, promotional offers, and price differences based on location or objective costs.
The Maryland attorney general’s Consumer Protection Division holds enforcement authority. Businesses receive a 45-day notice period to cure alleged violations before legal action. Penalties for non-compliance reach $10,000 per violation, increasing to $25,000 for repeat offenses. The law also provides for restitution and injunctive relief, though it does not establish a private right of action.
Legal experts suggest that companies should map pricing inputs across all sales channels and coordinate pricing teams with privacy counsel. As Connecticut and New Jersey have enacted similar restrictions, businesses face a complex landscape of state-level regulations. Documenting the basis for price differences and applicable exceptions is recommended to mitigate broader legal risks.
