Washington, D.C. — Following the Maryland legislature’s approval of the Protection Against Predatory Pricing Act, HB-895, a bill that claims to address surveillance pricing, the American Economic Liberties Project, Towards Justice, and Tech Equity Action released the following statement urging Governor Wes Moore to veto the legislation.

“Surveillance pricing is driving higher prices and exploiting American shoppers across the economy. The Maryland legislature passed a bill purporting to solve this problem, but it has been gutted by industry-friendly definitions and gaping loopholes. It also includes a new ban on private rights of action, the ability of individual consumers to take companies to court when they are cheated, which threatens the state’s existing Consumer Protection Act.

“Marylanders deserve real solutions to the very real affordability crisis being exacerbated by surveillance pricing. Governor Moore should veto this bill and wait for legislation that delivers genuine protections for Maryland consumers.”

The bill’s flaws include: 

1. Sweeping carveouts: The bill exempts “promotional offers” that can be individually targeted, undefined “temporary discounts,” and “lower” prices even where a fixed reference price is not listed.
2. “Loyalty program” exemption: The bill exempts any “loyalty program,” including automatic enrollment schemes and unsolicited marketing emails.
3. Subscriptions exemption: The bill exempts all subscription-based pricing, a growing sector of the consumer retail economy, from the ban on surveillance pricing.
4. “Consent” loophole: The bill allows surveillance pricing as long as a corporation claims a shopper “consented” even when that consent is buried in lengthy terms of service that no one reads. 
5. Banning private rights of action: The bill prevents consumers from bringing lawsuits against companies under this or “any other” law, turning the bill from an ineffective prohibition into an active liability shield for dishonest corporations.

Learn more about the surveillance pricing here.

Visit The Fair Price Fight to see which states are taking on surveillance pricing.

Learn more about Economic Liberties here.