Have you ever wondered whether the grocery prices on your phone are the same prices your neighbor sees? As more people turn to grocery delivery apps and online shopping, businesses collect information about where you live, what you buy, and how you shop. Some companies may use that information to determine how much individual customers pay.
However, Maryland's new pricing law now places restrictions on certain practices. On October 1, 2026, House Bill 895, also known as the Protection From Predatory Pricing Act, took effect. The law limits how large grocery stores and third-party delivery services can use personal information to charge shoppers higher prices for qualifying food purchases.
Although the law offers new consumer protections, it does not prohibit every type of personalized pricing or price change. Understanding what the law actually restricts can help you recognize potentially unfair pricing practices and determine when to report a concern.
At Maronick Law LLC, we believe Maryland residents should stay informed about changes in state law that may affect their everyday lives. Below, we explain what HB 895 means for grocery shoppers, which pricing practices the law restricts, what exceptions businesses can use, and how these new consumer protections may affect your future shopping experiences.
Maryland Pricing Law Basics: Why Did Lawmakers Pass HB 895?
Imagine opening a grocery delivery app and finding that a carton of milk costs more for you than it does for someone else shopping through the same service. The difference might seem small, but what if the company used information about your shopping habits to determine that you would pay more?
This practice relates to personalized pricing, sometimes called surveillance pricing. Businesses can use information about your browsing history, shopping preferences, location, or purchasing behavior to help determine the prices they offer individual consumers.
Maryland lawmakers addressed these concerns during the 2026 legislative session. Governor Wes Moore signed HB 895 into law on April 28, 2026, and the legislation became effective October 1, 2026.
Rather than prohibiting every price difference, Maryland lawmakers focused on restricting how covered businesses use consumers' personal information to charge higher prices for qualifying grocery purchases. The law also prohibits certain discriminatory practices involving personal information that reveals characteristics protected under state or federal law.
Who The Protection From Predatory Pricing Act Covers: Does Your Grocery Store Fall Under The New Rules?
Not every Maryland business must follow HB 895's new pricing restrictions. Instead, the law focuses on larger food retailers and businesses that arrange grocery deliveries.
The law generally covers:
- Large food retailers: Businesses that operate establishments with at least 15,000 square feet and sell food exempt from Maryland sales and use tax
- Third-party delivery services: Businesses that facilitate the delivery of qualifying tax-exempt food to consumers, including certain grocery delivery platforms
Maryland generally exempts qualifying groceries from sales tax when a grocery or market business sells them for consumption off the premises. However, certain prepared foods, including heated meals, party platters, and sandwiches intended for immediate consumption, remain taxable.
For example, a large supermarket in Baltimore or Montgomery County may fall under the law because of its size and the groceries it sells. Meanwhile, a smaller neighborhood grocery store that does not meet the size requirement generally falls outside the food retailer definition.
However, the law also covers qualifying third-party grocery delivery services, even if they do not operate a large supermarket. Therefore, Maryland's new pricing restrictions may apply when you order groceries through a delivery app, not just when you shop at a covered grocery store.
Surveillance Pricing Restrictions In Maryland: What Can Grocery Stores And Delivery Apps No Longer Do?
Maryland's Protection From Predatory Pricing Act restricts how covered grocery retailers and third-party delivery services can use consumers' personal information to charge higher prices for qualifying grocery purchases.
Under the new law, covered businesses cannot engage in certain practices, including:
- Personalized price increases: Using dynamic pricing to set a higher price for tax-exempt food for a specific shopper
- Data-driven grocery price increases: Using personal data to charge an individual consumer more for qualifying food purchases
- Discriminatory treatment: Using protected class data to deny a consumer an accommodation, advantage, or privilege available to others
Although the first two restrictions are similar, Maryland law addresses them separately. The law defines dynamic pricing as the discriminatory practice of offering or setting a personalized price based on a consumer's personal data, whether the business collected that information directly or purchased it from another source.
For example, suppose a covered grocery delivery service uses information about your previous purchases to determine that you are willing to pay more for certain groceries. If the company uses that personal information to charge you a higher price outside the law's exceptions, the practice may violate HB 895.
The law also restricts certain discriminatory practices involving protected class data. This includes information that identifies characteristics protected under Maryland or federal discrimination laws, such as race, religion, sex, or disability. However, HB 895 does not prohibit every instance in which shoppers see different prices. The reason behind the price difference matters.
Dynamic Pricing Exceptions Under HB 895: Which Grocery Price Differences Are Still Allowed?
One of the most important things Maryland shoppers should understand is that HB 895 does not ban all dynamic pricing or require stores to charge everyone the same amount.
Instead, the law allows covered businesses to offer different prices in several circumstances, including:
- Sales and promotions: Businesses can offer promotional prices, temporary discounts, and special deals intended to retain existing customers
- Loyalty and rewards programs: Stores can offer different prices through loyalty, membership, or rewards programs that consumers can voluntarily join
- Shipping and location costs: Businesses can adjust prices based on objective costs, including shipping expenses or taxes associated with a shopper's location
- Regional supply and demand: Businesses can set different prices based on costs or differences in supply and demand associated with selling goods in different locations or geographic areas
- Product availability: Businesses can adjust prices based on costs associated with the availability or supply of particular products
- Subscription agreements: Companies can offer prices through subscription-based contracts or agreements
- Consent-based pricing: Businesses can offer a price to consumers who agree to provide personal data or other information in exchange for that price
- Pricing corrections: Businesses can correct pricing errors or reset prices following system or network outages
For example, a supermarket may offer lower prices to customers who voluntarily join its rewards program. Likewise, grocery prices may differ between Baltimore and Ocean City because of geographic differences in supply costs.
These differences do not automatically violate Maryland law.
Similarly, if a shopper voluntarily provides personal information in exchange for a particular price, that arrangement may fall within one of the law's express exceptions.
Ultimately, the important distinction is whether a covered business uses personal information to impose a prohibited higher grocery price or applies one of the pricing practices the law permits.
Enforcement Of Maryland's Pricing Law: What Happens When A Business Breaks The Rules?
Maryland's Consumer Protection Division, which operates under the Office of the Attorney General, oversees enforcement of HB 895's consumer pricing provisions. The law classifies violations as unfair, abusive, or deceptive trade practices under the Maryland Consumer Protection Act. However, businesses have an opportunity to correct violations before facing enforcement action.
First, the Consumer Protection Division must notify the business of the alleged violation. The business then has 45 days after receiving the notice to correct the problem. If the business takes corrective action within that period, the Division cannot pursue enforcement for that violation. Otherwise, the Division may take action under the Maryland Consumer Protection Act.
Businesses that fail to correct violations may face civil penalties of up to $10,000 per violation. Additionally, businesses that repeat the same violation after a prior finding may face penalties of up to $25,000 for each subsequent violation.
Although HB 895 gives the Consumer Protection Division enforcement authority, it does not allow consumers to file private lawsuits solely for violations of its consumer pricing provisions. However, consumers may still have other legal options if a business engages in conduct that independently violates another law.
If you suspect a grocery store or third-party delivery service violated HB 895, you can report your concerns to Maryland's Consumer Protection Division. Before filing a complaint, gather receipts, screenshots, advertisements, and other records showing the prices you encountered. These details can help the Division evaluate your complaint and determine whether further action is appropriate.
Maryland Pricing Law FAQs: What Else Should Consumers Know About HB 895?
Does Maryland's New Pricing Law Ban All Dynamic Pricing?
No. HB 895 restricts covered businesses from using certain personalized pricing practices or personal data to charge individual shoppers higher prices for qualifying grocery items. The law still allows specified promotions, loyalty programs, location-based cost differences, and other exceptions.
Can I Sue A Grocery Store For Violating HB 895?
HB 895 does not authorize private lawsuits based on violations of its pricing provisions. The Maryland Attorney General's Consumer Protection Division handles enforcement. However, separate claims under other laws may still be available if a business engages in independently unlawful conduct.
Does HB 895 Apply To Restaurants Or Small Grocery Stores?
The law generally applies to food retailers with establishments of at least 15,000 square feet that sell qualifying tax-exempt food. Restaurants and smaller grocery stores generally fall outside this definition. However, qualifying third-party grocery delivery services may still fall under the law regardless of the size of the stores they serve.
When Did Maryland's Protection From Predatory Pricing Act Take Effect?
Maryland's Protection From Predatory Pricing Act took effect on October 1, 2026. Governor Wes Moore signed HB 895 into law on April 28, 2026.
How Do I Report A Possible Violation Of Maryland's Pricing Law?
Contact the Maryland Attorney General's Consumer Protection Division at 410-528-8662 or submit a complaint through its website. Include screenshots, receipts, and other evidence explaining why you believe a business used personal information to charge a prohibited higher grocery price.
Understanding Maryland's New Consumer Protection Laws: Maronick Law LLC Explains What Residents Should Know
Maryland's Protection From Predatory Pricing Act marks an important change in how certain grocery retailers and delivery services can use personal information to set prices. As businesses increasingly rely on technology to determine what consumers pay, understanding these new protections can help you make informed shopping decisions.
For Maryland residents, HB 895 offers greater clarity about certain personalized pricing practices, the differences the law permits, and what to do if you notice potentially unfair grocery prices. Although the law does not prohibit every price difference, it establishes restrictions designed to protect consumers from certain uses of their personal information.
At Maronick Law LLC, we believe Maryland residents should understand how changes in state law may affect their everyday lives. By staying informed about new consumer protection laws, you can better recognize potential violations, understand your rights, and make informed decisions for yourself and your family.
For more information about our firm and the legal services we provide, call Maronick Law LLC at443-551-2747 or visit our website.
Disclaimer: This article provides general information about Maryland law and does not constitute legal advice or establish an attorney-client relationship.