Connecticut
States Target ‘Surveillance Pricing’ as Maryland, New Jersey, and Connecticut Restrict Data-Based Retail Prices
Three states this year became the first ones to enact laws restricting companies from using personal data such as browsing history or shopping habits to set individualized prices on goods and services, a practice known as surveillance pricing. The laws…
Key points
- Maryland, New Jersey, and Connecticut became the first states to restrict ‘surveillance pricing’ based on personal consumer data.
- The new laws target grocery stores and delivery apps while carving out exceptions for loyalty programs and supply-driven cost changes.
- Retail and business groups caution that overly broad restrictions could increase compliance costs and disrupt beneficial customer reward programs.
NewsWK — A growing number of state legislatures are taking regulatory action against “surveillance pricing,” a practice where retailers utilize individual personal data—such as browsing history or purchase habits—to adjust prices for specific shoppers.
According to a report first published by Stateline, lawmakers in Maryland, New Jersey, and Connecticut have enacted the nation’s first laws limiting how businesses use personal consumer data to set prices, particularly within the grocery and food delivery sectors.
State Approaches to Variable Pricing
While lawmakers in at least 11 states evaluated similar legislation this year, business and retail groups have raised concerns, arguing that broad restrictions could create costly regulatory burdens and inadvertently interfere with popular customer loyalty programs.
Maryland‘s statute, taking effect Oct. 1, applies to grocery stores of at least 15,000 square feet and third-party delivery services. The law restricts using personal data to set price tags on most food items, while explicitly permitting loyalty discounts, subscription pricing, and standard adjustments based on regional costs or supply constraints. The law also gives businesses a 45-day window to fix potential violations before the state initiates enforcement.
In New Jersey, Gov. Mikie Sherrill signed a law in July that restricts personal data pricing on groceries and establishes a one-year moratorium on installing new electronic shelf labels while the state studies their market effect. Existing digital tags are permitted to remain in place.
“New Jersey families are already feeling the pressure of higher costs,” Sherrill said in a statement. “The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product.”
Connecticut Gov. Ned Lamont signed broader legislation in June, restricting surveillance pricing across retailers and delivery apps while maintaining standard exemptions for discounts unrelated to personal profile data.
Regulatory Impact and Free Market Concerns
Consumer advocates argue that data-driven dynamic pricing lacks transparency because customers cannot view what others are charged for identical items. Meanwhile, tech and retail trade organizations emphasize that heavy-handed regulations risk increasing operational and compliance costs for businesses, which could ultimately raise costs for consumers and disrupt popular rewards programs.
Based on reporting by Robbie Sequeira originally published by Stateline. Read the original story.
