Burr Partners Sandy Grimm and Elizabeth (Beth) Shirley authored an article for Chain Store Age examining Maryland’s Protection From Predatory Pricing Act and its impact on retailers using AI-driven pricing technologies. The article explores how the legislation may signal the beginning of a broader regulatory shift surrounding artificial intelligence, consumer data, and personalized pricing practices.

The article, titled "Maryland’s surveillance pricing ban signals new era for AI-driven grocery pricing," explains that Maryland’s law, set to take effect on October 1, 2026, prohibits grocery retailers and delivery providers from using personal consumer data to set individualized food prices. The Act seeks to prohibit the use of AI and consumer profiling to determine how much a particular shopper may be willing to pay.

A key theme of the article is the distinction between traditional dynamic pricing and what regulators are increasingly referring to as “surveillance pricing.” While dynamic pricing adjusts prices based on broader market factors such as supply and demand, inventory levels, and competitive conditions, surveillance pricing uses personal consumer data to tailor prices at the individual level.

The article states that the regulatory concern is the use of behavioral data, including purchase history, loyalty program participation, browsing activity, and other consumer signals, to set different prices for the same goods for different shoppers. This distinction is expected to become central as lawmakers continue evaluating the use of AI in retail pricing systems.

Sandy and Beth highlight the broader legal, compliance, and reputational risks associated with AI-driven pricing tools. While many AI pricing applications aim to improve efficiency, manage inventory, and optimize promotions, the use of personal data in pricing decisions may raise concerns about consumer protection, privacy laws, and potential disparate impacts.

The article concludes that Maryland’s law may represent an early sign of broader regulatory attention on how AI systems use consumer data to influence economic outcomes. Retailers are encouraged to proactively assess their pricing technologies, review data inputs and vendor relationships, and implement governance frameworks to mitigate emerging risk while continuing to leverage the operational benefits of AI.

Read the full article here.