Maryland has become the first state in the United States to enact a legislative ban on surveillance pricing, a controversial practice where businesses use personal data to set individualized prices for goods and services. The new law prohibits companies from leveraging specific consumer information—such as browsing history, geographic location, and demographic data—to charge different prices to different customers for the same product.
This pioneering measure targets algorithmic price discrimination that exploits a consumer's perceived willingness or ability to pay, aiming to foster greater transparency and fairness in the digital marketplace. Notably, the legislation preserves exceptions for traditional business practices: companies may still offer generalized discounts, seasonal sales, and loyalty program benefits, provided these offers are not based on surreptitious data collection.
Consumer advocacy groups have hailed the law as a significant victory for digital privacy, arguing it curbs invasive pricing tactics that often go unnoticed by shoppers. However, some industry representatives warn that the restrictions could hamper businesses' flexibility to deliver personalized incentives and tailor pricing strategies.
The bill, signed into law earlier this week, positions Maryland at the forefront of privacy regulation in the U.S. and could serve as a model for other states considering similar legislation.