Maryland Bill Bans Surveillance Pricing, Fines $10,000 Hit Kroger Stores
KR•Maryland’s Protection From Predatory Pricing Act would ban supermarkets from using consumer surveillance data for dynamic pricing and impose civil fines starting at $10,000 per violation under the expanded Online Data Privacy Act. Kroger’s Maryland stores must disable data-driven price algorithms or face these penalties.
1. Proposed Legislation
The Protection From Predatory Pricing Act expands Maryland’s Online Data Privacy Act of 2024 to prohibit supermarkets from setting prices or offers based on consumer surveillance data such as shopping habits, protected class attributes or geolocation. Violations are classified as unfair or deceptive trade practices, triggering civil fines starting at $10,000 under the Maryland Consumer Protection Act.
2. Impact on Kroger Operations
Kroger’s grocery formats across Maryland will no longer be able to use real-time digital price tags or online algorithms that adjust costs based on individual consumer profiles. The prohibition may limit promotional flexibility and reduce margin optimization strategies that rely on dynamic pricing analytics.
3. Compliance and Penalties
Enforcement would subject Kroger to per-incident fines beginning at $10,000 for any use of surveillance pricing methods. The company must update pricing systems, train staff on new requirements and monitor algorithms to avoid unintended violations or additional regulatory actions.
