Surveillance Pricing Ban Efforts Gather Steam

by Food Trade News Team

Lawmakers at both the federal and state levels are advancing measures to prohibit surveillance pricing and dynamic pricing in grocery stores amid concerns that algorithm-driven, data-based pricing could harm consumers.

At the federal level, U.S. senators Ben Ray Luján (D–NM) and Jeff Merkley (D–OR) introduced the Stop Price Gouging in Grocery Stores Act of 2026, which would bar the use of personalized pricing based on consumer data, require retailers to disclose use of technologies such as facial recognition in pricing, and prohibit electronic shelf label (ESL) systems that could enable differential pricing. 

The bill would be enforced by the Federal Trade Commission and includes exemptions for defined promotional pricing, such as discounts for seniors or students. 

A companion bill in the House has attracted more than 50 co-sponsors and is supported by labor groups including the United Food and Commercial Workers (UFCW), which represents about 1.2 million US and Canadian workers in 10 sectors.

In Maryland, state Democratic leaders have introduced legislation aimed at achieving a similar goal in the state’s $18.4-billion grocery market. The Protection from Predatory Pricing Act, part of the 2026 Maryland General Assembly’s agenda, would prohibit grocery stores from using surveillance data, that is, personal or biometric information, in setting prices, and would require prices to remain fixed for at least one business day to prevent rapid, algorithm-driven adjustments. 

The proposal grew out of concerns that companies could use artificial intelligence (AI) and consumer data to set individualized prices, a practice known as surveillance pricing, and that dynamic pricing enabled by ESL technology could lead to unpredictable price spikes.

Del. Joe Vogel (D–Montgomery County), sponsor of House Bill 0148, cited investigations into pricing practices by third-party delivery services as a catalyst for the legislation and argued that without regulation such tactics could spread. The bill also includes an amendment that would ban electronic shelf labels altogether if approved. 

Opponents – including the Maryland Retailers Alliance and technology advocates – testified that banning data-driven pricing could eliminate beneficial discounts and loyalty program pricing, and that current privacy laws already govern the collection and use of consumer data.

Governor Wes Moore and legislative leaders have framed the proposal as a consumer protection measure to ensure transparency and fairness in retail pricing. They argue that grocery prices should not vary based on invisible algorithmic factors and that technology should not be used to create individualized price spikes – a concern that intersects with broader debates over affordability and data privacy in everyday markets. 

Violations of the proposed Maryland law would carry civil penalties under the state’s consumer protection framework. 

The debate over surveillance and dynamic pricing in grocery is now moving from rhetoric to legislation. With federal lawmakers proposing nationwide restrictions and Maryland advancing its own consumer protection bill, retailers and technology providers are facing the prospect of new limits on how data can be used in price setting. As policymakers weigh transparency, privacy and affordability concerns against retailers’ arguments about flexibility and innovation, the outcome could shape not only grocery pricing practices but also the broader role of algorithm-driven technology in everyday retail.