Dynamic Pricing
Personalized pricing based on consumer data, excluding objective cost differences or promotions.
How the laws define this
Provisions under the Food Retailers and Third-Party Delivery Service Providers - Dynamic Pricing and Personal Data (Protection From Predatory Pricing Act) agree that dynamic pricing consists of setting or offering a personalized price unique to an individual consumer based on that consumer's personal data, regardless of whether the seller collected, purchased, or otherwise acquired the data. The primary divergence lies in their scope and specific inclusions or exclusions. The first definition under the Act explicitly excludes promotional pricing, loyalty programs, and price variations based on objective costs, including shipping, supply and demand, geographic costs, seasonality, or volatile tariff policy. In contrast, the second definition emphasizes automated execution, explicitly specifying that dynamic pricing includes prices set by AI systems that recalibrate in near real-time. Organizations assessing applicability under this framework must distinguish whether personalized price adjustments stem from real-time AI recalibration or qualify for explicit exceptions based on objective costs and promotional programs.
Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.
What it triggers
- In Maryland, under the Protection From Predatory Pricing Act, food retailers and third-party delivery service providers are restricted from using personal data and AI algorithms for dynamic pricing of tax-exempt food.source
- In Maryland, under the Protection From Predatory Pricing Act, food retailers and third-party delivery service providers are prohibited from using protected class data in dynamic pricing.source
Definitions (2)
The practice of offering or setting a personalized price for a good or service that is specific to a consumer based on the consumer's personal data, regardless of whether the seller collected or purchased the personal data. This definition explicitly excludes promotional pricing, loyalty programs, or price differences based on objective costs such as shipping, supply and demand, geographic costs, seasonality, or volatile tariff policy.
Dynamic pricing involves setting a personalized price for a good or service that is unique to a consumer, determined by their personal data, regardless of how that data was acquired. This includes prices set by AI systems that recalibrate in near real-time.
Questions and answers
What is prohibited under Maryland's Protection From Predatory Pricing Act regarding dynamic pricing?
The Act bans food retailers and third-party delivery service providers from using personal data and AI algorithms for personalized dynamic pricing of tax-exempt food. It also prohibits the use of protected class data in such pricing.
Does dynamic pricing include promotional pricing or loyalty programs in Maryland law?
No, the definition of dynamic pricing explicitly excludes promotional pricing, loyalty programs, or price differences based on objective costs such as shipping, supply and demand, geographic costs, seasonality, or volatile tariff policy.
Can AI systems be used for dynamic pricing under Maryland's Act?
No, the Act restricts the use of AI algorithms or systems that recalibrate prices in near real-time based on personal data for dynamic pricing by food retailers and delivery providers.