Could a Store Charge You More Because of Your Data? Some States Just Said No.

Two people open the same shopping app at the same moment and look at the same item. Should they see the same price? Most people assume so. But companies now know a lot about each of us, from our browsing history to how often we order and where we live. A new wave of state laws is trying to stop companies from using that information to charge some people more.

What Happened

Maryland's Protection From Predatory Pricing Act took effect on October 1, making it the first state to ban what lawmakers call surveillance pricing. It stops grocery stores, food retailers and third-party delivery services from using a customer's personal data to set a higher price for that specific person. Connecticut passed a broader ban covering retail sellers and delivery services, which takes effect February 1, 2027. Under Connecticut's law, other businesses that use personal data to raise a price must say so with a clear label reading: This price was increased using your personal data. New Jersey passed a ban on surveillance pricing for groceries that takes effect in August 2027, and New York already requires companies to disclose when an algorithm set a price using personal data. More than 40 related bills have been introduced in over two dozen states this year.

Why It Matters

Surveillance pricing is hard to spot because you never see what someone else was charged. Supporters of the laws say that makes it unfair: a company could charge more to people it predicts will pay, such as someone ordering late at night, using a newer phone or living in a wealthier zip code. Business groups argue some bills are written too broadly and could accidentally ban normal practices like loyalty discounts and coupons. Most of the new laws carve out exceptions for promotions, discounts and prices based on real cost differences. Critics also point to a loophole: a company could raise everyone's base price and then hand out personalized discounts to some customers.

The Concept: Dynamic vs. Personalized Pricing

Not all changing prices are the same. Dynamic pricing changes prices for everyone based on conditions like demand or time, the way rideshare fares surge during a storm or concert tickets rise as seats sell out. Location-based pricing, like the McDonald's example in the news recently, sets different prices for different stores or neighborhoods. Personalized pricing, the kind these laws target, uses data about you as an individual to decide what you specifically will be charged. Economists call the broader idea price discrimination, and it is often legal. The debate is about where the line should be when the data used to set your price is personal information you did not knowingly hand over for that purpose.

Why Teens Should Care

You probably use more apps than anyone else in your house: food delivery, shopping, rideshare, concert tickets. That means you generate a lot of the data these laws are about. A few smart habits help. Compare prices while logged out or on a different device when you are making a bigger purchase. Check the store's website against its app. Be thoughtful about which apps you give location access to. And notice when a deal is labeled as just for you, because a personal discount can sometimes hide a higher starting price.

This is also one of the fastest-moving areas of consumer law. If California or other big states follow, how every major app sets prices could change within a few years.