SB387, the “Protection From Predatory Pricing Act,” regulates pricing and data practices by certain large food retailers and third-party food delivery service providers. It prohibits those businesses from using dynamic pricing to raise prices for a specific consumer and from using surveillance personal data to set prices for consumer goods or services. The bill also bars the use of protected class data to offer, advertise, or sell goods or services when that use has the effect of withholding an accommodation, advantage, or privilege from a consumer.
The bill defines key terms such as “food retailer,” “third-party food delivery service provider,” “dynamic pricing,” “surveillance data,” and “personal data,” and it carves out several exceptions, including loyalty programs, subscription pricing, objective cost differences, shipping costs, taxes, and pricing tied to supply, demand, or system outages. It also adds a labor protection for food retailers, preventing them from making operational or organizational changes that diminish employee rights or benefits under an existing collective bargaining agreement or memorandum of understanding unless the change is negotiated and mutually agreed to by the employees’ exclusive representative. The bill is designated an emergency measure and takes effect October 1, 2026.
In state law, SB387 amends the Commercial Law Article, including the Maryland Consumer Protection Act provisions, and adds a new labor and employment section. It makes violations of the new pricing and data restrictions an unfair, abusive, or deceptive trade practice subject to enforcement and penalties under the Consumer Protection Act, while also limiting private enforcement for the new Commercial Law section and creating a separate private right of action for the labor provision. The bill also references the existing sales tax exemption for food sold off-premises by qualifying grocery or market businesses in defining covered entities.
The overall sentiment reflected in the available record is favorable: the Senate committee reported the bill favorably with amendments, and the Senate adopted it. The floor vote passed 31-12, indicating meaningful support but not unanimity. The absence of committee transcript excerpts limits insight into detailed debate, but the vote pattern suggests the bill was broadly supported while still drawing opposition.
The main points of contention are likely the bill’s restrictions on business pricing practices and data use, especially for large food retailers and delivery platforms that may rely on algorithmic pricing, consumer tracking, or targeted offers. Another likely area of debate is the labor provision, which constrains management changes affecting unionized employees unless negotiated with the union representative. Supporters appear to frame the bill as consumer protection against predatory or discriminatory pricing, while opponents likely view it as a significant regulatory burden on retail and delivery operations.
SB387 adds a new prohibition in the Commercial Law Article against dynamic pricing and the use of surveillance personal data for pricing by covered food retailers and third-party food delivery service providers, and it restricts the use of protected class data in ways that deny consumers benefits or accommodations. It amends Maryland Consumer Protection Act enforcement provisions so violations are treated as unfair, abusive, or deceptive trade practices, while excluding the new section from certain private-action and criminal-penalty provisions. The bill also creates a new Labor and Employment Article section protecting employee rights and benefits under existing collective bargaining agreements or memoranda of understanding at food retailers, unless changes are mutually agreed to by the employees’ exclusive representative.
The available legislative history shows generally favorable sentiment toward the bill. The Senate committee reported it favorably with amendments, and the Senate passed it on third reading by a 31-12 vote. That margin indicates substantial support for the bill’s consumer-protection and labor-related goals, though the recorded opposition suggests some concern about its regulatory scope and operational impact on covered businesses.
The most notable contention concerns the bill’s limits on algorithmic and data-driven pricing. Critics are likely to object to the prohibition on dynamic pricing and the use of surveillance or personal data in setting prices, arguing it could restrict legitimate pricing flexibility, promotions, and business analytics. Supporters, by contrast, appear focused on preventing discriminatory or exploitative pricing practices. A second point of contention is the labor provision, which prevents food retailers from unilaterally changing operations in ways that reduce union-negotiated rights or benefits, a restriction that may be viewed by employers as limiting managerial discretion and by labor advocates as preserving bargaining protections.