Maryland has become the first state to ban "surveillance pricing" in grocery stores after lawmakers passed the Protection from Predatory Pricing Act earlier this month.

The legislation, which takes effect Oct. 1, bans dynamic pricing and the use of surveillance data to tailor individual prices in grocery stores, protecting residents from intrusive data practices and sudden price swings that drive up the cost of groceries.

"Marylanders deserve to know that the price they see on the shelf is the price they will pay at the register," Maryland Gov. Wes Moore said in a statement Monday.

"Our administration is laser-focused on protecting Marylanders from skyrocketing costs. At a time when Marylanders are already stretched by the rising cost of groceries, housing, and everyday necessities, we must ensure that new technologies are not used to drive up the bill for working families."

"I can't wait to sign it," Moore wrote in an April 14 post on X.

Moore said the legislation can help shield Marylanders "from invasive data practices and unpredictable price spikes."

Businesses that don't follow the new guidelines could be fined up to $10,000 for their first offense.

Consumer Reports says the final draft of the bill falls short in its protection of consumers.

"While it's encouraging to see the Maryland legislature take up this issue, this bill has loopholes that will limit its real-world impact," the organization said in a press release.

"We urge other state legislatures considering personalized pricing legislation to build in stronger consumer protections and avoid loopholes that weakened this bill," the release added.

The Maryland Retailers Alliance said the bill is a "workable framework."

"The final bill reflects a workable framework that achieves the stated policy goal of prohibiting the use of consumer data to increase prices while preserving the ability for retailers to offer discounts and promotions that benefit consumers," a statement from the alliance read.

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