This browser does not support the Video element.
Maryland Gov. Wes Moore pushes ban on 'dynamic pricing' at grocery stores
Consumers have long complained about dynamic pricing for concert tickets — when promoters raise prices based on demand. But now, Maryland Gov. Wes Moore wants to ban the practice from grocery stores to help with affordability issues impacting shoppers across the state. FOX 5's Tom Fitzgerald explains.
ANNAPOLIS, Md. - Consumers have long complained about dynamic pricing for concert tickets. It’s when promoters raise prices based on demand.
But now, Maryland Gov. Wes Moore wants to ban the practice from grocery stores to help with affordability issues impacting shoppers across the state.
The governor took his case to lawmakers in Annapolis.
What’s happening:
Dynamic pricing is real. Lawmakers have looked at it and have spoken out against it, but it’s still used for in-demand items online or for entertainment tickets.
But Gov. Wes Moore told lawmakers on Tuesday that he’s concerned that the technology is going to start being used in Maryland grocery stores to hike prices on your favorite item once you walk into a grocery store.
What he says:
At the House Economic Matters Committee, Gov. Wes Moore testified for his "Protection from Predatory Pricing Act," which bans dynamic pricing in supermarkets.
The governor told the committee that consumers already have it hard enough right now, and he doesn’t want food stores to use people’s personal data to create individualized pricing, hiking those prices on items people regularly buy.
"For people who think the market should determine the prices, I say I agree, and I believe in fair markets. But I also believe that a fair market only works when their information or content is not being manipulated against the consumers," Moore said.
Dig deeper:
Under the bill, Maryland grocery prices would have to stay fixed for one day. It also bans grocery store from using surveillance or consumer data to set individualized prices.
But store owners pushed back, saying they use individualized data to give customers discount, not price hikes.
"There’s no evidence anywhere in the country that this is occurring. The federal trade commission studied this, the University of California studied this, there isn’t any evidence anywhere" in the country that this is occurring," said Cailey Locklair, president of the Maryland Retailers Alliance.
The governor has strong support for the bill from both Maryland’s Democratic speaker and the Senate president, despite the two being at odds over congressional redistricting.
That gives the bill a strong chance of passing, but opponents say it’s a solution in search of a problem.