John S.W. MacDonald, The New York Times; Maryland Is First to Ban A.I.-Driven Price Increases in Grocery Stores
"Maryland this week became the first state in America to ban grocery stores and third-party delivery services like DoorDash from using customers’ personal data to set higher prices.
The practice — supported by artificial intelligence and known as dynamic pricing or surveillance pricing — can lead to two consumers paying different amounts for the same item from the same retailer, at roughly the same time. If a store knows, for example, that one of those customers lives in a wealthier neighborhood, it can charge that person a higher price.
The bill enforcing the ban, the Protection From Predatory Pricing Act, goes into effect on Oct. 1. Merchants face fines of $10,000 for running afoul of the law, and penalties of $25,000 for repeat offenses.
“At a time when technology can predict what we need, when we need it, when we’ll pay for it and also when we’ll pay more for it,” Gov. Wes Moore of Maryland, a Democrat, said at a signing ceremony for the bill on Tuesday. “And at a time when we are watching how big companies are then using those analytics against us to make record profits, Maryland is not just pushing back. Maryland is pushing forward.”"
