By Tashi McQueen
AFRO Staff Writer
tmcqueen@afro.com
Maryland Gov. Wes Moore’s (D), on Feb. 17, testified before the Senate Finance Committee in support of the Protection from Predatory Pricing Act (Senate Bill 387 and House Bill 895).
The Protection from Predatory Pricing Act aims to increase transparency in grocery store pricing by banning “dynamic pricing” and the utilization of surveillance data to inform individualized pricing in grocery stores across the state.
“Dynamic pricing is a predatory practice that leaves consumers vulnerable to price manipulation,” said Elizabeth Bobo, legislative director of the Maryland State and D.C. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), a labor council dedicated to advocating for the interests of working people. “No consumer should have to pay more for groceries because an algorithm has determined them to be different from other shoppers. With technology today, two people could be standing at the same shelf, but can be shown different prices, not because of discounts or cost differences, but because an algorithm has decided they should pay different prices.”
Moore explained that dynamic pricing occurs when grocery stores collect personal data on shoppers—using aisle cameras, digital price tags, and sensors—to adjust prices for individuals.
“We know the technology is something that should be working for Maryland families and not working against Maryland families,” said Moore.
Bobo testified in favor of the bill, supporting an amendment to ban electronic shelf labels (ESLs), saying they let stores quickly change prices and enable dynamic pricing to be applied at scale.
But some question whether this is a true threat in Maryland. Minority Leader Sen. Stephen S. Hershey Jr. (R-Md.-36) raised the concern during the hearing.
Moore pushed back, saying the practice is happening in Maryland and other states, citing data showing it has affected large retailers and been documented elsewhere. He did not explicitly lay out the numbers during the hearing but said he is willing to share the data with Hershey.
If the concern is real, it could significantly affect Black Marylanders in food deserts, especially in Baltimore, where 30 percent of households lack a car and often depend on the nearest grocery store. People living in these areas are at a greater risk of facing higher prices, limited options and restricted access to healthy food.
“While you won’t hear me say that this bill stands in the way of innovation, I will say that it stands in the way of savings and affordability,” said Brianna January of the Chamber of Progress, a tech trade association.
“Here are some long-standing discounts Marylanders have come to expect and love that are threatened under the bill: personalized coupons, budget-stretching deals, win-back and retention deals, new parent deals and targeted same-day markdowns,” continued January. “This is a complicated issue, but please do not force Marylanders to find savings where savings used to find them.”
As of Feb. 18, SB 387 is still awaiting a vote from the Senate Finance Committee, which will determine whether the bill advances to the Senate floor for debate and amendments or dies. HB 895 will be heard in the House Economic Matters committee on March 3 at 1 p.m.