Annapolis, MD – The Maryland Retailers Alliance opposes legislation that would prohibit so-called “surveillance pricing” because it is based on misconceptions about how pricing actually works in grocery stores and retail more broadly.

Retailers do not set prices based on individual consumers’ personal data, identity, or purchasing history. Grocery shelf prices are the same for every customer who walks through the door, regardless of who they are, where they live, or what they have purchased in the past. Claims suggesting otherwise are simply inaccurate.

Much of the confusion stems from a misunderstanding of dynamic or algorithmic pricing, which retailers use to manage inventory, respond to wholesale cost changes, and remain competitive. This technology helps retailers adjust prices uniformly across all shoppers based on factors such as supplier costs, seasonality, promotions, and market competition—not personal consumer data.

Recent academic research, including a University of California San Diego study examining the use of electronic shelf labels in grocery stores, found no evidence of surge pricing or individualized pricing as a result of these technologies. The study concluded that fears of grocery “surge pricing” are not supported by real-world data.

Grocery retailers already operate on razor-thin margins, often between one and three percent. Restricting legitimate pricing tools would increase operational costs, reduce flexibility, and ultimately harm consumers through higher prices, reduced promotions, or fewer choices—particularly in communities already facing affordability challenges.



Maryland should focus on policies grounded in facts, not fear, and the fact is that retail technology utilizing consumer data is used to lower prices, not increase them. Legislation that bans practices retailers do not engage in risks unintended consequences while failing to address real consumer concerns. We urge lawmakers to reject proposals that mischaracterize retail pricing practices and instead work collaboratively with businesses to protect consumers and maintain a competitive, affordable marketplace.

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