Maryland bans personalised pricing in grocery stores as AI pricing spreads

In short: Maryland has banned personalised pricing in grocery stores, as more companies use data and AI to adjust prices for individual shoppers.

What happened

Maryland has passed a law that outlaws personalised pricing in grocery stores. This is the idea of charging different people different prices for the same item, based on information about them.

The Financial Times notes that personalised pricing is not new. It can look like loyalty card discounts, or like ride-hailing “surge” pricing, where prices rise when lots of people want a ride at the same time.

What is changing is how personal it can get. Companies can use AI (software that finds patterns in data, a bit like an automated analyst) and details they collect about you to estimate the highest price you might accept. The article points to past backlash, including Amazon apologising in 2000 after some customers paid more than others for DVDs, and Delta Air Lines recently saying it would not set individual prices based on personal data.

A Bank of England survey found that over 40% of UK companies in sectors like retail, accommodation, recreation, and health already use personalised pricing in simple forms. More companies plan to expand it.

Why it matters

For shoppers, this can cut two ways. In theory, it could mean more discounts for people who might not otherwise buy. But it can also feel like a “different price tag for each person” system, and it may reward people with time to search for deals while others pay more.

Source: Financial Times