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A new law will ban retailers from using shoppers' personal data to hike grocery prices—but consumer advocates warn it contains loopholes that companies could exploit.
Maryland will become the first US state to outlaw "surveillance pricing" for groceries after Democratic Gov. Wes Moore signed a bill on Monday barring retailers and food delivery services from using customers' personal data to alter prices.
The practice has already become rampant in online commerce, with companies like Amazon, Uber, and Delta Air Lines accused of using everything from browsing history and location to demographic information to squeeze every possible cent from consumers.
The Protection from Predatory Pricing Act, which takes effect in Maryland beginning on October 1, targets the growing use of such tactics by grocery chains and delivery apps, which Moore has accused of using "new technologies to drive up the bill for working families."
These include electronic shelf labels, which advocates have warned could allow companies to instantly change grocery prices based on the time of day, weather, and other factors that influence consumer demand.
“Digital price tags are replacing paper ones. It’s happening because we are having cameras that are watching aisles, it’s happening because we have apps that are moving from search-based to predictive,” Moore said.
Moore has cited an investigation published in December by Consumer Reports and the Groundwork Collaborative, which found that Instacart was running a “pricing experiment” that charged some customers as much as 23% more for the same items than others based on shoppers' personal data.
Another investigation by Consumer Reports last May found that Kroger was collecting lengthy profiles of individual customers, including estimates of their household size, education level, income, and even perceived "loyalty" to the company, along with sometimes dozens of other pages of personal data.
"Surveillance pricing can drive up the price of food," said Grace Gedye, senior policy analyst at Consumer Reports. "Retailers have a lot of data about individual shoppers: how often we search for or hover over particular items, whether we live near competitor stores, inferences about our likes and dislikes, our dietary needs, our income, our family size, and more."
"Surveillance pricing," she said, "allows companies to take advantage of that information asymmetry and charge you as much as they think you’re individually willing to pay.”
To combat this, Maryland's new law requires that shelf prices remain steady for one full business day. It also bars retailers from using surveillance data, such as inferred income, ethnicity, family size, neighborhood, or purchasing history, to raise prices for individuals.
Companies that violate the law will receive civil penalties of up to $10,000 for first offenses and $25,000 for repeat offenses. They will also be given 45 days to correct violations before these fines apply.
Gedye said, "While it’s encouraging to see the Maryland Legislature take up this issue, this law has loopholes that will limit its real-world impact."
The law faced fierce opposition from industry groups, including the Maryland Retailers Alliance. The group ultimately withdrew its opposition, but only after several new provisions were introduced that Consumer Reports said "undercut" the law's effectiveness.
While the law bans the use of personal data to set higher prices, the group said there is no way to determine what constitutes a "baseline or standard price," meaning price fluctuations could easily be marketed as discounts. It also said companies could use loyalty and subscription programs—which are exempt from the law—to raise prices.
The group also warned that the law is too hard to enforce, since only the Maryland attorney general, not customers themselves, can bring suits, which it said is a "departure from Maryland’s primary consumer protection law."
Many other states—including California, New York, and Illinois—are considering similar bans, and legislation has been proposed at the federal level to outlaw surveillance and surge-pricing practices nationwide.
Gedye said, "We urge other state legislatures considering personalized pricing legislation to build in stronger consumer protections and avoid loopholes that weakened this bill.”
Built on a simple premise to lower energy costs, modernize the grid, and protect consumers where they are most vulnerable, the Energy Bills Relief Act is an urgent path forward that deserves swift passage by Congress.
As tensions in the Middle East once again drive oil prices upward, the ripple effects are hitting household budgets at the worst possible time. While the economy took center stage in 2024 and energy affordability was at the crux of the 2025 elections in Georgia, New Jersey, and Virginia, today, millions of Americans are still opening astronomical utility bills and struggling to make the payments. Nearly 20 million households nationwide are behind on their utility bills, and Americans collectively owe more than $20 billion in unpaid energy costs. If gas prices continue to climb, more families will have to make difficult trade-offs every month just to keep the lights on.
To make matters worse, instead of addressing the cost-of-living crisis, Congress scaled back the very policies designed to expand domestic energy supply, modernize the grid, and lower bills, despite energy prices being a bipartisan priority. Dismantling programs and incentives, such as production credits for wind and solar projects, through the One Big Beautiful Bill, has injected instability into energy markets at precisely the moment when Americans need relief most. With an aging grid that is too old to keep up with rising demand from data centers and electrification, compounded by extreme weather, states are completely unprotected, facing spiraling costs and potential blackouts.
The reality is that a majority of voters support solar energy, as demonstrated by recent polling and GoodPower’s own research, which shows broad support across the ideological spectrum. Even in today’s polarized climate, lawmakers in red and blue states alike have found common ground on protecting ratepayers. Congress came together as recently as 2021 to pass the Bipartisan Infrastructure Law, while historically, federal programs like the Weatherization Assistance Program and ENERGY STAR have drawn long-standing bipartisan support for their focus on lowering costs. We have seen how, when lowering costs is the priority, progress is possible.
That’s why the Energy Bills Relief Act isn’t just welcome, but an urgent path forward that deserves swift passage by Congress. Built on a simple premise to lower energy costs, modernize the grid, and protect consumers where they are most vulnerable, the bill was introduced by Reps. Sean Casten (D-Ill.) and Mike Levin (D-Calif.) to put workers and families at the center of America’s energy future.
The bill is built on tested programs to lower energy bills, strengthen reliability, and protect households from unfair costs.
For one, the legislation would restore incentives for domestic clean energy production, cut permitting delays that hold up critical projects, expand access to community and household solar, and invest in modernizing the grid. We know this strategy works to lower costs. A recent analysis shows that states with more renewable power didn't experience the price spikes seen elsewhere.
Just as important, the legislation cracks down on price gouging by energy companies and prevents the administration from using “energy emergencies” to prolong more expensive, outdated coal plants. It reinforces accountability, ensuring that large new energy users, including massive data centers, contribute to grid upgrades instead of shifting costs onto existing ratepayers. States such as Michigan have already moved in this direction by adopting policies to protect ratepayers from unfair cost allocation, but we need a consistent federal standard. Voters agree, with our polling showing they overwhelmingly show strong support for policies that crack down on price gouging by energy companies (74%).
Some may argue that now is not the time and that there are other policies, but the truth is, we can’t afford to wait. Every year we delay grid upgrades, households pay billions more because of grid congestion, outages, and fuel price swings. These disruptions aren’t mere inconveniences. They impact families’ livelihoods.
The bill is built on tested programs to lower energy bills, strengthen reliability, and protect households from unfair costs. Right now, families care far more about their monthly bills than about partisan victories. If lawmakers are serious about lowering energy bills and helping the American families they claim to serve, advancing this legislation would be a real step forward toward an energy system that is reliable, affordable, and built for the future.
"As costs soar from Trump’s illegal war with Iran, any attempt by big corporations to jack up prices is unacceptable," said Rep. Jan Schakowsky.
Democratic lawmakers are warning corporate America to not use President Donald Trump's unconstitutional war with Iran as an excuse to jack up prices on US consumers.
US Sens. Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), and Ed Markey (D-Mass.), along with Reps. Jan Schakowsky (D-Ill.) and Chris Deluzio (D-Pa.), sent a letter on Tuesday to the Federal Trade Commission demanding that it investigate and prosecute any unlawful price gouging by corporations during Trump's war, which has raised the cost of oil, gasoline, fertilizer, and other essential goods.
While the Democrats acknowledged that Trump's war created "broad supply chain disruptions and widespread uncertainty in the global economy," they warned that "big corporations may capitalize on this uncertainty to hike prices more than is warranted by actual input cost increases, price gouging everyday Americans while enriching executives and padding investors’ pockets."
The lawmakers accused big corporations in recent years of using assorted crises—including the global Covid-19 pandemic, the 2022 Russian invasion of Ukraine, and Trump's massive "Liberation Day" tariffs on foreign goods—to justify hiking prices beyond what could be warranted by input increases caused by external shocks.
The lawmakers also touted the Price Gouging Prevention Act that they introduced in July 2025 that would expand the authority of the FTC and state attorneys general to stop sellers from charging a "grossly excessive price, regardless of where the price gouging occurs in a supply chain or distribution network."
The proposed bill would also require public companies to "clearly disclose costs and pricing strategies" used to justify any price increases during periods of economic disruption.
In a social media post, Schakowsky said that "as costs soar from Trump’s illegal war with Iran, any attempt by big corporations to jack up prices is unacceptable," emphasizing that "we must crack down on price gouging and protect consumers."
The call to stop price gouging comes as concerns are mounting about the major economic damage that Trump's Iran war could produce.
Larry Fink, CEO of hedge fund BlackRock, predicted during an interview with BBC on Wednesday that there would be a "stark and steep recession" throughout the world if the war dragged on and the price of oil hit $150 per barrel, which he said would raise costs on products everywhere.
"Rising energy prices are a very regressive tax," Fink said. "It affects the poor more than the wealthy, because it's a larger component of their pocketbook."
CNBC reported on Wednesday that forecasters have been increasing their odds of a recession in the US economy this year, as the Iran war puts a strain on oil prices at a time when job growth in the country has already ground to a halt.
"Moody’s Analytics’ model has raised its recession outlook for the next 12 months to 48.6%," wrote CNBC. "Goldman Sachs boosted its estimate to 30%. Wilmington Trust has the odds at 45%, while EY Parthenon has it at 40%, with the caveat that 'those odds could rapidly rise in the event of a more prolonged or severe Middle East conflict.'"