Editing Maryland AI Dynamic Pricing Act (section)

== What the law regulates ==

=== Dynamic pricing for food ===

For covered food retailers and third-party food delivery service providers, the Act prohibits using dynamic pricing to set a higher price for tax-exempt food for a specific consumer.<ref name="chapter154" /> The enrolled law defines dynamic pricing as the discriminatory 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 data, including through AI or models that retrain or recalibrate in near real time.<ref name="chapter154" /><ref name="fiscal-note" />

The law also prohibits covered entities from using surveillance personal data to set a higher price for tax-exempt food for a single consumer or group of consumers.<ref name="chapter154" /> "Personal data" is tied to Maryland's consumer data privacy definition: information linked or reasonably linkable to an identified or identifiable consumer, excluding de-identified data and publicly available information.<ref name="chapter154" />

=== Protected class data ===

Covered food retailers and third-party food delivery service providers may not use protected class data to offer, advertise, or sell a consumer good or service if the use has the effect of withholding or denying an accommodation, advantage, or privilege accorded to others.<ref name="chapter154" /> The Act defines protected class data as information that, alone or in combination, directly or by implication identifies a characteristic legally protected from discrimination under Maryland or federal law.<ref name="chapter154" />

=== General algorithmic-pricing disclosure rule ===

Commercial Law § 13-322 creates a disclosure rule for merchants outside the food-retailer and third-party food-delivery rule. A merchant may not set the price of a consumer good or service using dynamic pricing or personal data and then advertise, promote, label, or otherwise communicate that price unless the communication includes a clear and conspicuous disclosure stating:<ref name="chapter154" />

<blockquote>"THIS PRICE WAS SET BY AN ALGORITHM OR BY USING YOUR PERSONAL DATA"</blockquote>

The disclosure must appear in the same medium and at or near the price communication, using wording and lettering that is easily visible and understandable to consumers.<ref name="chapter154" />