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.
(A)(1)–(6) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) "CONSUMER DATAConsumer data"Consumer data" includes personal data and sensitive data, as those terms are defined in § 14–4701 of this article.Md. Code, Com. Law § 13-321(A)(2)" INCLUDES PERSONAL DATA AND SENSITIVE DATA, AS THOSE TERMS ARE DEFINED IN § 14–4701 OF THIS ARTICLE; (3) "DEVICE DATADevice data"Device data" means information about a device owned or used by a consumer, including available battery life.Md. Code, Com. Law § 13-321(A)(3)" MEANS INFORMATION ABOUT A DEVICE OWNED OR USED BY A CONSUMER, INCLUDING AVAILABLE BATTERY LIFE. (4) "PROCESSProcess"Process" has the meaning stated in § 14–4701 of this article. (1) "Process" means an operation or set of operations performed by manual or automated means on personal data. (2) "Process" includes collecting, using, storing, disclosing, analyzing, deleting, or modifying personal data.Md. Code, Com. Law § 13-321(A)(4); § 14-4701(y)" HAS THE MEANING STATED IN § 14–4701 OF THIS ARTICLE. (5) "PROFILINGProfiling"Profiling" has the meaning stated in § 14–4701 of this article. "Profiling" means any form of automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable consumer's economic situation, health, demographic characteristics, personal preferences, interests, reliability, behavior, location, or movements.Md. Code, Com. Law § 13-321(A)(5); § 14-4701(aa)" HAS THE MEANING STATED IN § 14–4701 OF THIS ARTICLE. (6) "SURVEILLANCE–BASED PRICE SETTINGSurveillance–based price setting"Surveillance–based price setting" means the practice of setting the price of consumer goods or services based on profiling or other processing of consumer or device data.Md. Code, Com. Law § 13-321(A)(6)" MEANS THE PRACTICE OF SETTING THE PRICE OF CONSUMER GOODSConsumer goods"Consumer goods" has the meaning stated in § 13–301 of this subtitle.Md. Code, Com. Law § 13-322(A)(2) OR SERVICES BASED ON PROFILINGProfiling"Profiling" has the meaning stated in § 14–4701 of this article. "Profiling" means any form of automated processing performed on personal data to evaluate, analyze, or predict personal aspects related to an identified or identifiable consumer's economic situation, health, demographic characteristics, personal preferences, interests, reliability, behavior, location, or movements.Md. Code, Com. Law § 13-321(A)(5); § 14-4701(aa) OR OTHER PROCESSING OF CONSUMER OR DEVICE DATADevice data"Device data" means information about a device owned or used by a consumer, including available battery life.Md. Code, Com. Law § 13-321(A)(3).
(B) THIS SECTION APPLIES TO A MERCHANT THAT CONDUCTS BUSINESS IN THE STATE OR PROVIDES CONSUMER GOODSConsumer goods"Consumer goods" has the meaning stated in § 13–301 of this subtitle.Md. Code, Com. Law § 13-322(A)(2) OR SERVICES TO CONSUMERS IN THE STATE.
(C) THIS SECTION DOES NOT APPLY TO A MERCHANT 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 OFFERED TO ALL CONSUMERS OF A GROUP ON EQUAL TERMS CONSISTENT WITH ANTIDISCRIMINATION LAWS.
(D) 1 A PERSON MAY NOT ENGAGE IN SURVEILLANCE–BASED PRICE SETTINGSurveillance–based price setting"Surveillance–based price setting" means the practice of setting the price of consumer goods or services based on profiling or other processing of consumer or device data.Md. Code, Com. Law § 13-321(A)(6) OR UTILIZE A THIRD PARTY TO ENGAGE IN SURVEILLANCE–BASED PRICE SETTINGSurveillance–based price setting"Surveillance–based price setting" means the practice of setting the price of consumer goods or services based on profiling or other processing of consumer or device data.Md. Code, Com. Law § 13-321(A)(6).
This section prohibits any merchant doing business in Maryland or serving Maryland consumers from engaging in surveillance-based price setting — defined as setting prices based on profiling or other processing of consumer or device data. The prohibition extends to using third parties to conduct such pricing. Two narrow exemptions preserve cost-based price differentiation and group discounts offered on equal terms consistent with antidiscrimination laws.
The key operative terms — profiling, process, consumer data, and device data — are defined by reference to Maryland's existing Online Data Privacy Act (§ 14-4701), anchoring this prohibition in the state's broader data privacy framework. The practical effect is to ban algorithmically personalized pricing that leverages individual consumer surveillance profiles.
(A)(1)–(5) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) "CONSUMER GOODSConsumer goods"Consumer goods" has the meaning stated in § 13–301 of this subtitle.Md. Code, Com. Law § 13-322(A)(2)" HAS THE MEANING STATED IN § 13–301 OF THIS SUBTITLE. (3) (I) "ELECTRONIC SHELVING LABELElectronic shelving label(I) "Electronic shelving label" means an electronic and wireless paper display that shows product and pricing information of consumer goods. (II) "Electronic shelving label" includes e–paper.Md. Code, Com. Law § 13-322(A)(3)" MEANS AN ELECTRONIC AND WIRELESS PAPER DISPLAY THAT SHOWS PRODUCT AND PRICING INFORMATION OF CONSUMER GOODSConsumer goods"Consumer goods" has the meaning stated in § 13–301 of this subtitle.Md. Code, Com. Law § 13-322(A)(2). (II) "ELECTRONIC SHELVING LABELElectronic shelving label(I) "Electronic shelving label" means an electronic and wireless paper display that shows product and pricing information of consumer goods. (II) "Electronic shelving label" includes e–paper.Md. Code, Com. Law § 13-322(A)(3)" INCLUDES E–PAPER. (4) "FOOD RETAILERFood retailer"Food retailer" means a merchant that operates a business establishment that: (I) has a minimum of 15,000 square feet; and (II) sells food that is exempt from the sales and use tax in accordance with § 11–206(c) of the Tax – General Article.Md. Code, Com. Law § 13-322(A)(4)" MEANS A MERCHANT THAT OPERATES A BUSINESS ESTABLISHMENT THAT: (I) HAS A MINIMUM OF 15,000 SQUARE FEET; AND (II) SELLS FOOD THAT IS EXEMPT FROM THE SALES AND USE TAX IN ACCORDANCE WITH § 11–206(C) OF THE TAX – GENERAL ARTICLE. (5) "NONDIGITAL PRESENTATION OF PRICENondigital presentation of price"Nondigital presentation of price" means: (I) a sign that offers the unit price for one or more brands or sizes of a consumer good; (II) a sticker, stamp, sign, label, or tag indicating the price of a consumer good affixed to the shelf on which the consumer good is displayed; or (III) a sticker, stamp, label, or tag indicating the price of a consumer good affixed to the consumer good.Md. Code, Com. Law § 13-322(A)(5)" MEANS: (I) A SIGN THAT OFFERS THE UNIT PRICE FOR ONE OR MORE BRANDS OR SIZES OF A CONSUMER GOOD; (II) A STICKER, STAMP, SIGN, LABEL, OR TAG INDICATING THE PRICE OF A CONSUMER GOOD AFFIXED TO THE SHELF ON WHICH THE CONSUMER GOOD IS DISPLAYED; OR (III) A STICKER, STAMP, LABEL, OR TAG INDICATING THE PRICE OF A CONSUMER GOOD AFFIXED TO THE CONSUMER GOOD.
(B)–(C) 2 A FOOD RETAILERFood retailer"Food retailer" means a merchant that operates a business establishment that: (I) has a minimum of 15,000 square feet; and (II) sells food that is exempt from the sales and use tax in accordance with § 11–206(c) of the Tax – General Article.Md. Code, Com. Law § 13-322(A)(4) MAY NOT USE ELECTRONIC SHELVING LABELSElectronic shelving label(I) "Electronic shelving label" means an electronic and wireless paper display that shows product and pricing information of consumer goods. (II) "Electronic shelving label" includes e–paper.Md. Code, Com. Law § 13-322(A)(3) OR ANY DIGITAL SHELF DISPLAY TECHNOLOGY TO DISPLAY THE PRICE OF CONSUMER GOODSConsumer goods"Consumer goods" has the meaning stated in § 13–301 of this subtitle.Md. Code, Com. Law § 13-322(A)(2). (C) A FOOD RETAILERFood retailer"Food retailer" means a merchant that operates a business establishment that: (I) has a minimum of 15,000 square feet; and (II) sells food that is exempt from the sales and use tax in accordance with § 11–206(c) of the Tax – General Article.Md. Code, Com. Law § 13-322(A)(4) SHALL USE NONDIGITAL PRESENTATIONS OF PRICE TO DISPLAY THE PRICE OF CONSUMER GOODSConsumer goods"Consumer goods" has the meaning stated in § 13–301 of this subtitle.Md. Code, Com. Law § 13-322(A)(2).
This section prohibits food retailers — merchants operating establishments of at least 15,000 square feet that sell sales-tax-exempt food — from using electronic shelving labels or any digital shelf display technology to display consumer goods prices. Instead, food retailers must use nondigital presentations of price: physical signs, stickers, stamps, labels, or tags affixed to the shelf or the product itself.
This provision targets the infrastructure that enables dynamic pricing rather than the pricing algorithm itself. By banning the digital display hardware in large grocery establishments, the bill forecloses the real-time price-change capability that surveillance-based pricing depends on in physical retail environments. This is not an AI-specific obligation but is the physical-retail counterpart to § 13-321's data-processing prohibition.
(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 adds surveillance-based wage setting (§ 3-718) to the list of violations the Commissioner of Labor and Industry may investigate upon receipt of a written complaint from an employee. It establishes the complaint-driven enforcement pathway for the wage-setting prohibition but creates no independent compliance obligation for employers beyond what § 3-718 itself requires.
(A)(1)–(4) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (2) (I) "AUTOMATED DECISION SYSTEMAutomated decision system(I) "Automated decision system" means a system, software, or process that uses computation to assist, approximate, or replace human decision making. (II) "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or techniques that utilize artificial intelligence, as defined in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Lab. & Empl. § 3-718(A)(2)" MEANS A SYSTEM, SOFTWARE, OR PROCESSProcess"Process" has the meaning stated in § 14–4701 of this article. (1) "Process" means an operation or set of operations performed by manual or automated means on personal data. (2) "Process" includes collecting, using, storing, disclosing, analyzing, deleting, or modifying personal data.Md. Code, Com. Law § 13-321(A)(4); § 14-4701(y) THAT USES COMPUTATION TO ASSIST, APPROXIMATE, OR REPLACE HUMAN DECISION MAKING. (II) "AUTOMATED DECISION SYSTEMAutomated decision system(I) "Automated decision system" means a system, software, or process that uses computation to assist, approximate, or replace human decision making. (II) "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or techniques that utilize artificial intelligence, as defined in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Lab. & Empl. § 3-718(A)(2)" INCLUDES A SYSTEM, SOFTWARE, OR A PROCESSProcess"Process" has the meaning stated in § 14–4701 of this article. (1) "Process" means an operation or set of operations performed by manual or automated means on personal data. (2) "Process" includes collecting, using, storing, disclosing, analyzing, deleting, or modifying personal data.Md. Code, Com. Law § 13-321(A)(4); § 14-4701(y) DERIVED FROM MACHINE LEARNING, STATISTICS, OR OTHER DATA PROCESSING OR TECHNIQUES THAT UTILIZE ARTIFICIAL INTELLIGENCE, AS DEFINED IN § 3.5–801 OF THE STATE FINANCE AND PROCUREMENT 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.Md. Code, Lab. & Empl. § 3-718(A)(4) IN CONJUNCTION WITH AN AUTOMATED DECISION SYSTEMAutomated decision system(I) "Automated decision system" means a system, software, or process that uses computation to assist, approximate, or replace human decision making. (II) "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or techniques that utilize artificial intelligence, as defined in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Lab. & Empl. § 3-718(A)(2) 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.Md. Code, Lab. & Empl. § 3-718(A)(4)" 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.
(B) THIS SECTION DOES NOT APPLY IF AN EMPLOYER: (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(I) "Automated decision system" means a system, software, or process that uses computation to assist, approximate, or replace human decision making. (II) "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or techniques that utilize artificial intelligence, as defined in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Lab. & Empl. § 3-718(A)(2), DISCLOSES IN PLAIN LANGUAGE TO THE EMPLOYEE WHAT DATA IS CONSIDERED AND HOW THE AUTOMATED DECISION SYSTEMAutomated decision system(I) "Automated decision system" means a system, software, or process that uses computation to assist, approximate, or replace human decision making. (II) "Automated decision system" includes a system, software, or a process derived from machine learning, statistics, or other data processing or techniques that utilize artificial intelligence, as defined in § 3.5–801 of the State Finance and Procurement Article.Md. Code, Lab. & Empl. § 3-718(A)(2) CONSIDERS THE DATA.
(C) 3 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) 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.
This section prohibits employers from engaging in surveillance-based wage setting — defined as using surveillance data in conjunction with an automated decision system to offer or set customized wages for specific employees or groups of employees. The automated decision system definition is broad, encompassing any computation-based system that assists, approximates, or replaces human decision making, explicitly including machine learning and AI-derived systems.
A narrow exemption applies when the employer uses employee-specific data directly related to the hired task or based on work location and cost of living, provided the employer discloses in plain language before hiring what data the automated decision system considers and how it uses that data. Enforcement runs through the Commissioner of Labor and Industry on employee complaint, with referral to the Attorney General for injunctive relief, damages, or other relief.