Retail advocates warn a Maryland bill aimed at preventing rapid price changes in grocery stores could backfire, instead prohibiting targeted discounts and promotions for consumers.

Senate Bill 387 would ban dynamic pricing, the practice of changing prices from customer to customer based on real-time market trends. Consumer fears around dynamic pricing have increased as grocery retailers normalize the use of electronic shelf labels.

Cailey Locklair, president of the Maryland Retailers Association, emphasized grocers and retailers do not use consumer data from promotion programs to raise prices. They use it to find ways to lower prices and keep consumers returning to their stores.

"There is so much competition, and a consumer will drive miles to save pennies on gasoline or a consumer good," Locklair observed. "We literally cannot afford to raise a price on a consumer because they’re not going to go back to us."

The bill is one of Gov. Wes Moore’s legislative priorities and has support from the leaders of both the state Senate and House. Moore argued price manipulation exists in supermarkets and passing the bill is a matter of fairness and transparency.

The bill does include an exemption for loyalty programs and certain promotions but retailers remain concerned the language is so broad it would still affect potential discounts. Locklair noted there are already laws to prevent price gouging in many industries.

"If there is a bad actor that is displaying a price to a consumer then changing that price when the consumer goes to purchase the product, that is an unfair and deceptive trade practice," Locklair emphasized. "Maryland, as well as many states across the country, have laws around that."

She added her organization wants the attorney general’s office to enforce the legislation, rather than leave the enforcement open to trial attorneys who frequently sue companies for alleged violations.