A fast-growing group of US states is moving to outlaw surveillance pricing, the practice of using a shopper’s personal data to set an individual price, a shift that could reshape how retailers and delivery apps set prices. Maryland, Connecticut, and New Jersey have each enacted bans this year, and Maryland’s first-in-the-nation law is set to take effect on October 1, 2026, according to reporting by Stateline and Route Fifty.
The measures arrive as legal analysts count dozens of similar bills in statehouses and as federal regulators weigh their own disclosure rules. Officials backing the laws call surveillance pricing a consumer-protection problem, while industry groups argue that some bills are drafted too broadly and could sweep in lawful discounts.
In short
- Three states (Maryland, Connecticut, and New Jersey) have enacted surveillance pricing bans in 2026, with Maryland’s and Connecticut’s laws set to take effect October 1.
- New Jersey’s law carries penalties of up to $50,000 per violation, treble damages, and a private right of action, plus a one-year pause on new electronic shelf labels.
- More than 40 bills targeting personalized pricing are pending across two dozen-plus states, per law firm tallies, alongside 28 electronic shelf label bills in 16 states.
- The FTC issued an advance notice of proposed rulemaking on April 14, 2026, that includes personalized pricing disclosure, though the agency has favored targeted enforcement over broad rules.
- Retailers face a fragmented compliance map, with New York already requiring disclosure and California pursuing the issue as a privacy matter.
What surveillance pricing means
Regulators draw a sharp line between two kinds of pricing. Dynamic pricing adjusts a listed price based on aggregate market factors such as supply, demand, and seasonality, showing the same price to everyone. Surveillance pricing, also called personalized pricing, instead uses data about a specific shopper (browsing history, location, device, and past purchases) to estimate willingness to pay and quote a price tailored to that person.
Consumer advocates say the practice is hard to detect because shoppers cannot see the prices offered to others for the same item, which is what makes it a consumer-protection concern rather than ordinary competition. Industry representatives counter that lawful discounts, loyalty rewards, and subscription pricing can look similar, which is why the new statutes carve out specific exceptions.
Three states move first
The three laws take different approaches. Maryland’s statute, described as the first in the country, targets larger grocery stores and third-party food delivery. Connecticut’s law, signed by Gov. Ned Lamont in June, applies more broadly to retailers and delivery platforms. New Jersey’s version, signed by Gov. Mikie Sherrill on July 23, focuses on groceries and adds the toughest remedies of the three.
| State | Scope | Key terms |
|---|---|---|
| Maryland | Grocery stores of at least 15,000 sq ft and third-party food delivery | Effective Oct. 1, 2026; 45-day window to correct before state action; exceptions for loyalty and subscription pricing |
| Connecticut | Retailers and third-party delivery services (broad) | Signed June 2026; effective Oct. 1, 2026; exceptions for discounts unrelated to personal data |
| New Jersey | Grocery retailers | Signed July 23, 2026; up to $50,000 per violation; treble damages; private right of action; one-year moratorium on new electronic shelf labels |
Announcing the law, Gov. Sherrill said: “New Jersey families are already feeling the pressure of higher costs. The last thing they need is companies secretly using their personal data to charge them more than someone else for the exact same product.” Sponsors in other states have pitched their bills the same way, as grocery-affordability measures rather than technology restrictions.
A widening wave of bills
The enacted laws are the leading edge of a much larger push. At least 11 states weighed surveillance pricing measures this year, according to Stateline and Route Fifty, while law firm analyses count more than 40 pending bills across two dozen or more states. A parallel track targets the hardware: analysts count 28 bills in 16 states that would regulate electronic shelf labels, the digital price tags that update in real time.
Disclosure, rather than an outright ban, is another common model. New York’s Algorithmic Pricing Disclosure Act, which took effect in 2025, requires businesses to tell shoppers when a personalized algorithm sets a price, and it survived a First Amendment challenge. California’s attorney general opened a surveillance pricing investigation in January 2026 through the state’s privacy laws.
Where federal regulators stand
At the federal level, the Federal Trade Commission has signaled interest without imposing a sweeping rule. On April 14, 2026, the agency issued an advance notice of proposed rulemaking covering total price disclosure, fee transparency, personalized pricing disclosure, and unauthorized billing protections. An advance notice gathers public comment and does not by itself create binding obligations.
Under Chair Andrew Ferguson, the FTC has scaled back broad rulemaking in favor of targeted enforcement, according to legal observers, relying on its authority over unfair or deceptive practices. That approach has left states to move faster, often using their own consumer-protection statutes. The commission began examining surveillance pricing in 2024, and it remains a stated area of interest.
What it means for retailers and shoppers
For retailers, the immediate task is mapping obligations state by state. A national grocer or marketplace may face a ban in one state, a disclosure label in another, and a privacy probe in a third. Legal advisers suggest reviewing how pricing algorithms use personal data and preparing disclosures where required.
- Audit whether pricing systems use individual data such as browsing history, location, or device.
- Separate lawful loyalty, subscription, and volume discounts from personalized prices that could trigger a ban.
- Track effective dates, including Maryland and Connecticut on October 1, 2026.
- Watch New York disclosure rules and California’s privacy enforcement for signals on federal direction.
For shoppers, supporters say the laws aim to ensure the price reflects the product and the market, not an inference about how much a customer will tolerate. Whether they deliver that will depend on enforcement, court challenges, and how clearly regulators separate personalized pricing from everyday discounts.
Frequently asked questions
What is surveillance pricing, and how is it different from dynamic pricing?
Surveillance pricing uses a shopper’s personal data, such as browsing history or past purchases, to set an individualized price based on inferred willingness to pay. Dynamic pricing changes the single listed price for everyone based on market factors like supply and demand. Regulators target the personalized version.
Which states have banned surveillance pricing so far?
As of August 2026, Maryland, Connecticut, and New Jersey have enacted bans. Maryland’s and Connecticut’s laws take effect October 1, 2026. New Jersey’s adds penalties of up to $50,000 per violation, treble damages, and a private right of action. New York requires disclosure rather than a ban.
Is there a federal law banning surveillance pricing?
Not currently. The FTC issued an advance notice of proposed rulemaking on April 14, 2026, that includes personalized pricing disclosure, but that is an early step, not a binding rule. The agency has instead emphasized targeted enforcement.
What should retailers do now?
Legal advisers recommend auditing how pricing algorithms use individual data, distinguishing lawful discounts and loyalty programs from personalized pricing, tracking state effective dates, and preparing disclosures where laws like New York’s require them. Requirements vary by state.