Maryland is poised to become the first state to ban dynamic pricing at grocery stores, as lawmakers in dozens of states move to restrict retailers' ability to use technology that changes prices throughout the day or shows different customers different costs for the same items. Governor Wes Moore's legislative agenda included a bill addressing retailers' use of digital price tags and related technologies.
Digital shelf labels have become increasingly common at major grocery chains. Walmart, Kroger, and Whole Foods are among the retailers now using electronic shelving labels instead of traditional paper tags. These devices allow prices to be updated remotely and instantly across stores.
What the Left Is Saying
Sen. Elizabeth Warren (D-Mass.) accused Amazon of dynamic pricing earlier this year, arguing that algorithmic pricing could harm consumers. Former Sen. Bob Casey (D-Pa.), along with other Democrats in 2024, expressed concerns about Kroger's use of electronic shelving labels, worried they could result in personalized pricing based on shopping behavior or demographic factors.
Consumer advocates aligned with progressive groups say dynamic pricing could disproportionately affect lower-income shoppers who have less flexibility to shop at optimal times. They argue that technology that allows real-time price changes creates opportunities for retailers to exploit demand surges during emergencies or economic stress.
The "Stop Price Gouging in Grocery Stores Act of 2025" was introduced in both the House and Senate, with Democrats arguing that federal safeguards are needed as digital pricing technologies become more widespread. More than 40 bills targeting personalized algorithmic pricing were introduced across 24 states this year, according to a March report cited by Nexstar.
What the Right Is Saying
Retail industry groups argue that electronic shelf labels actually benefit consumers by reducing pricing errors and enabling more frequent discounts. Mercy Du Beehler, vice president of government relations at the National Retail Federation, wrote in a blog post that digital tags are "a communication tool, not a decision-making system" that do not track customers or collect personal data.
Conservative economists contend that dynamic pricing reflects normal market forces rather than unfair practices. Ryan Bourne, an economist at the Cato Institute, told CNBC that consumers are likely to benefit from these technologies rather than suffer higher prices. In parts of Europe where electronic tags have been used for years, retailers have primarily adjusted prices based on competitor pricing, often resulting in downward competition.
Republicans generally favor allowing market forces to determine prices without government intervention. Industry groups argue that legislation like Maryland's bill could stifle innovation and limit retailers' ability to compete effectively, potentially leading to higher overall prices rather than lower ones.
What the Numbers Show
Walmart has deployed digital shelf labels at more than 2,000 stores nationwide. The company stated that "prices are the same for all customers in any given store and are consistent regardless of demand, time of day or who is shopping."
A study published last year found "virtually no surge pricing" before or after electronic shelf labels were introduced at an unnamed grocery chain, according to reporting by the Associated Press. Researchers discovered that discounts actually became slightly more common with digital labels.
The FIFA World Cup, being held in the U.S., Canada, and Mexico this year, is using dynamic pricing on tickets for the first time. A formal complaint has been filed over those ticket prices. Additionally, a complaint was filed against JetBlue accusing the airline of collecting personal data from passengers to set individualized airfares.
Multiple federal bills addressing grocery pricing practices remain in committee as of early 2026.
The Bottom Line
The debate over dynamic pricing in grocery stores reflects broader tensions between consumer protection and free-market principles as retail technology evolves. Maryland's legislation, if enacted, would establish the first state-level ban on the practice at grocery retailers.
Both sides point to data supporting their positions: opponents cite privacy concerns and potential for discriminatory pricing, while supporters note that current implementations show little evidence of surge pricing and have increased discount availability. The research remains mixed, with a peer-reviewed study showing minimal price increases after digital tag adoption.
What happens next will likely depend on how other states respond to Maryland's precedent. Industry observers are watching whether the federal "Stop Price Gouging in Grocery Stores Act" advances through Congress, which would set national standards rather than allowing a patchwork of state regulations.