How the First Surveillance Pricing Ban in America Falls Short
Gizmodo • • business
Key Points:
- Maryland became the first state to pass a bill, the Protection From Predatory Pricing Act, restricting surveillance pricing by banning food retailers and delivery services from using personal data to set customized prices, though it still requires the governor's signature to become law.
- Critics, including George Slover from the Center for Democracy and Technology, argue the bill is too narrow, only covering food retailers, and contains broad exemptions for loyalty programs, subscription services, and customer consent that may create loopholes.
- The law includes a 45-day grace period for violations and limits enforcement to the Maryland Attorney General, raising concerns about accountability and administrative challenges, with no provision for private lawsuits.
- Consumer Reports also criticized the bill for its loopholes and urged other states to implement stronger consumer protections in their personalized pricing legislation.
- As artificial intelligence makes dynamic and surveillance pricing easier, at least a dozen other states are considering similar legislation, with federal bills under consideration but unlikely to advance until political shifts occur after the midterm elections.
