WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(14)(xlix) SECTION 14–1330 OF THIS ARTICLE; OR
This provision amends Maryland's enumerated list of unfair, abusive, or deceptive trade practices to include violations of the new § 14–1330, which prohibits surveillance-based price setting. By incorporating the new section into § 13–301(14), any violation of the surveillance-based price setting prohibition is automatically subject to the full enforcement and penalty framework of the Maryland Consumer Protection Act.
(A)(1)–(5) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) "ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" has the meaning stated in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Com. Law § 14–1330(A)(2)" HAS THE MEANING STATED IN § 3.5–801 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. (3) (I) "AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3)" MEANS A SYSTEM, SOFTWARE, OR A PROCESS THAT USES COMPUTATION TO ASSIST, APPROXIMATE, OR REPLACE HUMAN DECISION MAKING. (II) "AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3)" INCLUDES A SYSTEM, SOFTWARE, OR A PROCESS DERIVED FROM MACHINE LEARNING, STATISTICS, OR OTHER DATA PROCESSING OR ARTIFICIAL INTELLIGENCEArtificial intelligence"Artificial intelligence" has the meaning stated in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Com. Law § 14–1330(A)(2) TECHNIQUES. (III) "AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3)" DOES NOT INCLUDE PASSIVE COMPUTING INFRASTRUCTURE. (4) "SURVEILLANCE–BASED PRICE SETTINGSurveillance–based price setting"Surveillance–based price setting" means the use of surveillance data in conjunction with an automated decision system to offer or inform a customized price for a good or service for a specific individual or group of individuals in the State.Md. Code, Com. Law § 14–1330(A)(4)" MEANS THE USE OF SURVEILLANCE DATASurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an individual relating to personal or genetic information, behavior, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes data gathered, purchased, or otherwise acquired.Md. Code, Com. Law § 14–1330(A)(5) IN CONJUNCTION WITH AN AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3) TO OFFER OR INFORM A CUSTOMIZED PRICE FOR A GOOD OR SERVICE FOR A SPECIFIC INDIVIDUAL OR GROUP OF INDIVIDUALS IN THE STATE. (5) (I) "SURVEILLANCE DATASurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an individual relating to personal or genetic information, behavior, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes data gathered, purchased, or otherwise acquired.Md. Code, Com. Law § 14–1330(A)(5)" MEANS DATA OBTAINED THROUGH OBSERVATION, INFERENCE, OR SURVEILLANCE OF AN INDIVIDUAL RELATING TO PERSONAL OR GENETIC INFORMATION, BEHAVIOR, OR BIOMETRICS OF THE INDIVIDUAL OR A GROUP, BAND, CLASS, OR TIER TO WHICH THE INDIVIDUAL BELONGS. (II) "SURVEILLANCE DATASurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an individual relating to personal or genetic information, behavior, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes data gathered, purchased, or otherwise acquired.Md. Code, Com. Law § 14–1330(A)(5)" INCLUDES DATA GATHERED, PURCHASED, OR OTHERWISE ACQUIRED.
(B)–(C) 1 THIS SECTION DOES NOT APPLY TO A PERSON THAT OFFERS A CUSTOMIZED PRICE TO A CONSUMER OR GROUP OF CONSUMERS WHEN THE DIFFERENT PRICES: (1) ARE BASED ON DIFFERENCES IN COST TO PROVIDE A GOOD OR SERVICE TO DIFFERENT CONSUMERS; OR (2) REFLECT A DISCOUNT OR REWARD OFFERED TO ALL CONSUMERS ON EQUAL TERMS IN WHICH: (I) THE TERMS OF THE DISCOUNT OR REWARD ARE AVAILABLE AND ACCESSIBLE TO EACH CONSUMER; (II) THE DISCOUNT OR REWARD IS OFFERED UNIFORMLY TO EACH CONSUMER WHO MEETS THE DISCLOSED ELIGIBILITY CRITERIA, SUCH AS STATUS AS A SENIOR, STUDENT, TEACHER, VETERAN, OR MEMBER OF THE MILITARY; AND (III) ELIGIBILITY FOR THE DISCOUNT OR REWARD IS BASED ON INFORMATION AFFIRMATIVELY AND VOLUNTARILY PROVIDED BY THE CONSUMER TO THE PERSON OFFERING THE DISCOUNT OR REWARD. (C) ANY SURVEILLANCE DATASurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an individual relating to personal or genetic information, behavior, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes data gathered, purchased, or otherwise acquired.Md. Code, Com. Law § 14–1330(A)(5) USED TO OFFER A CUSTOMIZED PRICE IN ACCORDANCE WITH SUBSECTION (B) OF THIS SECTION MAY NOT BE USED FOR ANY OTHER PURPOSE, INCLUDING PROFILING, TARGETED ADVERTISING, OR THE SETTING OF A PRICE IN ANY OTHER MANNER NOT CONSISTENT WITH SUBSECTION (B) OF THIS SECTION.
(D) 1 A PERSON MAY NOT ENGAGE IN SURVEILLANCE–BASED PRICE SETTINGSurveillance–based price setting"Surveillance–based price setting" means the use of surveillance data in conjunction with an automated decision system to offer or inform a customized price for a good or service for a specific individual or group of individuals in the State.Md. Code, Com. Law § 14–1330(A)(4).
Section 14–1330 is the bill's core consumer-protection provision. It defines surveillance-based price setting — the use of surveillance data in conjunction with an automated decision system to set customized prices — and flatly prohibits the practice. The prohibition is broad: it covers any person offering or informing a customized price for a good or service for a specific individual or group in Maryland.
Two narrow exceptions apply: cost-based price differentials and uniformly-offered discounts or rewards where the terms are publicly available, offered equally to all eligible consumers, and based on information the consumer voluntarily provides. Even where a price is set under these exceptions, the underlying surveillance data may not be repurposed for profiling, targeted advertising, or any other non-excepted pricing use.
(e)(7) THE COMMISSIONER MAY INVESTIGATE WHETHER § 3–718 OF THIS TITLE HAS BEEN VIOLATED ON RECEIPT OF A WRITTEN COMPLAINT OF AN EMPLOYEE.
This provision grants the Commissioner of Labor and Industry authority to investigate potential violations of the new § 3–718 (surveillance-based wage setting prohibition) upon receipt of a written employee complaint. It integrates the new prohibition into the existing enforcement machinery of the Labor and Employment Article.
(A)(1)–(4) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) "AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3)" HAS THE MEANING STATED IN § 14–1330 OF THE COMMERCIAL LAW ARTICLE. (3) "SURVEILLANCE–BASED WAGE SETTINGSurveillance–based wage setting"Surveillance–based wage setting" means the use of surveillance data in conjunction with an automated decision system to offer or inform a customized wage for a specific employee or group of employees in the State.Md. Code, Lab. & Empl. § 3–718(A)(3)" MEANS THE USE OF SURVEILLANCE DATASurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an individual relating to personal or genetic information, behavior, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes data gathered, purchased, or otherwise acquired.Md. Code, Com. Law § 14–1330(A)(5) IN CONJUNCTION WITH AN AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3) TO OFFER OR INFORM A CUSTOMIZED WAGE FOR A SPECIFIC EMPLOYEE OR GROUP OF EMPLOYEES IN THE STATE. (4) "SURVEILLANCE DATASurveillance data"Surveillance data" means data obtained through observation, inference, or surveillance of an individual relating to personal or genetic information, behavior, or biometrics of the individual or a group, band, class, or tier to which the individual belongs. "Surveillance data" includes data gathered, purchased, or otherwise acquired.Md. Code, Com. Law § 14–1330(A)(5)" HAS THE MEANING STATED IN § 14–1330 OF THE COMMERCIAL LAW ARTICLE.
(B)–(C) 2 THIS SECTION DOES NOT APPLY TO AN EMPLOYER WHO: (1) OFFERS A CUSTOMIZED WAGE BASED ON DATA SPECIFIC TO AN EMPLOYEE THAT IS: (I) DIRECTLY RELATED TO THE TASK THE EMPLOYEE WAS HIRED TO PERFORM; OR (II) BASED ON THE LOCATION WHERE THE EMPLOYEE WORKS AND THE COST OF LIVING IN THAT LOCATION; AND (2) BEFORE HIRING AN EMPLOYEE WHOSE WAGES ARE SET IN WHOLE OR IN PART THROUGH AN AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3), DISCLOSES IN PLAIN LANGUAGE TO THE EMPLOYEE WHAT DATA IS CONSIDERED AND HOW THE AUTOMATED DECISION SYSTEMAutomated decision system"Automated decision system" means a system, software, or a process that uses computation to assist, approximate, or replace human decision making. "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or artificial intelligence techniques. "Automated decision system" does not include passive computing infrastructure.Md. Code, Com. Law § 14–1330(A)(3) CONSIDERS THE DATA. (C) AN EMPLOYER MAY NOT ENGAGE IN SURVEILLANCE–BASED WAGE SETTINGSurveillance–based wage setting"Surveillance–based wage setting" means the use of surveillance data in conjunction with an automated decision system to offer or inform a customized wage for a specific employee or group of employees in the State.Md. Code, Lab. & Empl. § 3–718(A)(3).
(D) THIS SECTION DOES NOT DIMINISH THE RIGHT OF COVERED EMPLOYEES TO COLLECTIVELY BARGAIN OVER TERMS AND CONDITIONS OF EMPLOYMENT IN EXCESS OF THE PROTECTIONS UNDER THIS SUBTITLE.
(E)(1)–(2) WHENEVER THE COMMISSIONER DETERMINES THAT THIS SECTION HAS BEEN VIOLATED, THE COMMISSIONER SHALL: (I) TRY TO RESOLVE ANY ISSUE INVOLVED IN THE VIOLATION INFORMALLY BY MEDIATION; OR (II) ASK THE ATTORNEY GENERAL TO BRING AN ACTION ON BEHALF OF THE APPLICANT OR EMPLOYEE. (2) THE ATTORNEY GENERAL MAY BRING AN ACTION UNDER THIS SUBSECTION IN THE COUNTY WHERE THE VIOLATION ALLEGEDLY OCCURRED FOR INJUNCTIVE RELIEF, DAMAGES, OR OTHER RELIEF.
Section 3–718 is the bill's employment-side counterpart to the consumer pricing prohibition. It prohibits employers from engaging in surveillance-based wage setting — using surveillance data in conjunction with an automated decision system to set or inform a customized wage for a specific employee or group of employees in Maryland.
The employer exception is narrower than the consumer-side exception: it requires that the customized wage be based on data directly related to the employee's hired task or the employee's work location and cost of living, and that the employer disclose in plain language before hiring what data the automated decision system considers and how. Collective bargaining rights are expressly preserved. Enforcement runs through the Commissioner of Labor and Industry to the Attorney General, who may seek injunctive relief, damages, or other relief.
(a), (c) In this subtitle the following words have the meanings indicated. (c) "Artificial intelligenceArtificial intelligence"Artificial intelligence" has the meaning stated in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Com. Law § 14–1330(A)(2)" means a machine–based system that: (1) can, for a given set of human–defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments; (2) uses machine and human–based inputs to perceive real and virtual environments and abstracts those perceptions into models through analysis in an automated manner; and (3) uses model inference to formulate options for information or action.
This section is reenacted without amendments solely to establish the cross-referenced definition of artificial intelligence used by the new § 14–1330. It imposes no new obligations.