National policymakers propose consumer protection through AI-powered personalized pricing
Lawmakers in more than a dozen states have introduced bills to ban dynamic pricing.
Lawmakers are considering both bans and disclosure requirements on algorithmic pricing
National policymakers are scrambling to establish consumer protections as retailers increasingly use artificial intelligence-powered personalized pricing.
Lawmakers in more than a dozen states have proposed or introduced bills on the issue, concerned that customers are being unfairly targeted for higher product costs.
In Maryland this week, Democratic Gov. Wes Moore stood on either side of the House speaker. Jocelyn Peña Melnyk and the Senate President bill ferguson — announced that one of this year’s legislative priorities is to ban “dynamic pricing” in grocery stores.
“This isn’t innovation, it’s exploitation,” Moore said at a grocery store near Annapolis that doesn’t use dynamic pricing. “This is not a fair market. This is a stacked market. This is about profit.”
So-called supervised pricing is made possible by the ability of companies to collect large amounts of data about individual consumers, whether they are shopping online or in-store.
Maryland’s predatory pricing law, which has not yet been filed, would prohibit grocery stores from using electronic shelf labels to adjust prices in real time. Stores will also be prohibited from using “surveillance data” to set personalized prices for people as they browse the aisles, according to one report. announcement From Moore’s office.
Stores must set a price and leave it for at least a day. Repeat violations are subject to fines of up to $25,000.
read more: MD data privacy law offers new model
Automatic pricing bills have also been introduced in several other states in 2026. arizona, florida, Hawaii, illinois, kentucky, nebraska, oklahoma, pennsylvania, tennessee, vermont state, virginia and washington. Prohibiting “monitored pricing” is also a priority. colorado Democratic Party.
New York state lawmakers have introduced more than half a dozen bills on this topic. measurement This prevents online retailers from setting prices based on factors such as a person’s location. be invoice It would ban electronic shelf labels in food and drug stores. and law Broadly ban personalized algorithmic pricing.
2025 New York Law already needed When companies use algorithms and personal data to set prices; legal challenge.
Some parts of Massachusetts’ pricing bill are carried over from last year. one This would prohibit grocery stores from using biometric data to set prices. similar measurement He still lives in California.
Another Maryland invoicefrom the Democratic Party of Japan. Joe Vogelcovers both “monitoring-based” pricing and wage setting. This is defined as a customized price or wage that is set through an automated decision system based on data collected about an individual or group of individuals.
in november post At X, Vogel said the bill is “a type of consumer and worker protection” that could conflict with President Donald Trump’s policies. presidential order Targets artificial intelligence regulation at the national level.
Lawmakers typically take one of two approaches to personalized algorithmic pricing: seek to outlaw it or require consumer disclosure.
“In introducing the legislation, lawmakers are trying to strike a balance by prohibiting clearly harmful scenarios like price gouging and exploitation, while also ensuring that they don’t prevent companies from offering loyalty programs, personalized discounts, and other things that consumers can enjoy,” said Jameson Spivak, deputy director of AI at the Future of Privacy Forum. Track algorithmic pricing methods.
Another category of bills that started to take off last year was for rent-setting algorithms. only one new york Signed into law. Colorado bill the right of veto was exercised. Some bills are carried over as new law introduced this year arizona, new hampshire, new jersey, rhode island and virginia.
read more: Democrats seek a statewide ban on rent-setting algorithms
The Democratic Party of Connecticut announced He plans to introduce a bill that would ban the use of facial recognition technology in retail stores. The proposal follows reports that a prominent grocery store chain is deploying the technology to identify known shoplifters.
Connecticut Senate Majority Leader: “No one signs up for a facial scan when they go to the store to buy milk or eggs.” bob duffDemocrat; told News 12added that facial recognition could also be used for personalized pricing.
Most of the sponsors of the pricing bill are Democrats, suggesting potential partisan tensions over how to regulate how companies set prices.
Federal Trade Commission under former President Joe Biden A report has been published Last January, it was discovered that people’s geolocation data and browser history is often used to set different prices for different consumers. An example is a new parent finding the price of a baby thermometer to be high.
“Initial staff findings found that retailers frequently use people’s personal information to set targeted and tailored prices for goods and services, from a person’s location and demographics to the movements of their mouse on a web page,” FTC Chair Lina Khan said at the time.
Companies including Delta Air Lines have rejected suggestions that they are using AI to extract the best value from their customers. Delta Air Lines said in a letter to lawmakers in July 2025 that its dynamic pricing model is based on “aggregated data” and can cause prices to rise or fall based on market trends.
“Again, the prices are not intended for individual consumers.” letter Said.
The tech industry opposes efforts to ban or limit algorithmic pricing. in letter The Progressive Chamber wrote to New York lawmakers last year that algorithms play a role in “lowering prices for consumers” and enabling “more dynamic and responsive markets.”
