MRA Pushes Back On MD Governor’s Pricing Comments
As published by The Shelby Report:
The Maryland Retailers Alliance (MRA) is challenging public comments by Gov. Wes Moore regarding so-called “predatory pricing” in grocery stores, arguing his characterization has created confusion about the law and scope of newly signed legislation.
The pushback follows Moore’s signing April 28 of the Protection From Predatory Pricing Act, which made Maryland the first state to ban price manipulation practices driven by surveillance data.
Disputing description
In describing the issue, Moore stated that two people could be charged different prices for the same item based on personal data – a characterization that the MRA noted is inaccurate under state law.
The alliance stated that such practices are already prohibited under the Maryland Consumer Protection Act, which clearly defines unfair or deceptive trade practices – including misleading or discriminatory pricing – as illegal. Any retailer engaging in the conduct described is subject to pre-existing enforcement action.
The alliance also emphasized that the newly enacted Protection From Predatory Pricing Act does not address or prohibit individualized grocery pricing as Moore described it. Suggesting otherwise, it said, misrepresents the scope and legal effect of the legislation.
Economic realities
The industry response also pointed to the highly competitive nature of the grocery sector as a check on the kind of pricing practices Moore described.
Grocery stores operate within one of the most competitive sectors of the economy, typically sustaining profit margins of 1 to 3 percent.
The alliance said this environment benefits consumers by keeping prices low and limiting the ability of any single retailer to artificially inflate prices without losing business.
The notion that widespread, individualized price gouging could occur in such a market is inconsistent with the economic realities, the group said.
The alliance further noted that the Maryland Office of the Attorney General has no record of substantiated complaints indicating a pattern of grocery stores engaging in unlawful predatory pricing increases.
Other industries
The alliance contends that policy discussions about individualized or dynamic pricing models would be more appropriately focused on other industries.
Sectors such as third-party delivery platforms, hotels, rideshare apps and airlines have long relied on variable pricing based on demand, timing and consumer data. These sectors are where such pricing practices are most prevalent.
Call for accuracy
The alliance closed its statement with a call for clearer communication from public officials about consumer protection laws.
“Accurate public communication about consumer protection laws is essential. Maryland residents deserve clarity about their rights and confidence that existing laws already safeguard them from unfair and deceptive practices,” the group said.
It urged public officials to ensure that statements regarding consumer protection and pricing practices reflect the law as written and enforced.
