Maryland is poised to become the first state in the United States to ban surveillance pricing, a practice that allows businesses to raise prices based on shoppers' personal data and habits. The bill, approved by lawmakers earlier this month, now awaits the signature of Governor Wes Moore, who has expressed strong support. In a post on X dated April 14, Moore stated he 'can't wait to sign it,' making the law's enactment all but certain.
What Is Surveillance Pricing?
Surveillance pricing involves using a shopper's personal information, past purchases, cart activity, and even protected data such as gender to set individualized prices. The goal is to maximize revenue by charging the highest price a customer is willing to pay without losing the sale. A December 2025 study by Consumer Reports found that this practice can cost shoppers as much as $1,200 per year.
The tactic combines dynamic pricing with extensive data collection. For example, an online grocery store might increase the price of a product for a customer who frequently buys organic items, while offering a lower price to a budget-conscious shopper. This leads to different consumers paying different prices for the same product.
National Attention and Federal Findings
Surveillance pricing has become a national issue, prompting the Federal Trade Commission (FTC) to publish a study in January 2025. The FTC found that surveillance pricing can boost a company's revenue by up to 5 percent and profits by up to 4 percent. The impact extends beyond grocery stores; car dealerships also use dynamic pricing traps. A customer browsing cars at an in-store kiosk might inadvertently signal to the dealer that they are a first-time buyer, leading to tailored financing rates, trade-in discounts, or maintenance offers that may not be in the customer's best interest.
'A car could potentially be segmented as a 'first-time car buyer' by the dealership using these tools, inferring that the shopper might be less savvy about the options available and be promoted particular financing rates, trade-in discounts, or maintenance products,' the FTC wrote.
Other States Take Action
Maryland is not alone in targeting surveillance pricing. New York passed a law in November 2025 requiring retailers to inform customers when they use AI or personal data to set prices. A bill introduced in the New York legislature in January 2026 would ban the practice entirely, though it has not yet advanced. In California, Attorney General Rob Bonta launched an investigation in late January 2026 into how businesses use surveillance pricing and whether it violates state consumer protection laws.
As Maryland moves toward enacting its ban, consumer advocates hope it will set a precedent for other states and potentially federal regulation. The law could signal a shift toward greater transparency and fairness in retail pricing, protecting shoppers from hidden costs that accumulate over time.
