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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0889*
SENATE BILL 889
I3, K3, S1 6lr2324
By: Senator Lam
Introduced and read first time: February 6, 2026
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Consumer Protection and Labor and Employment – Electronic Shelving Labels 2
and Surveillance–Based Price and Wage Setting – Prohibitions 3
FOR the purpose of prohibiting a person from engaging in surveillance–based price setting 4
to set the price of consumer goods or services; prohibiting a food retailer from using 5
electronic shelving labels to display the prices of consumer goods, and instead 6
requiring the use of nondigital presentations of price ; making a certain violation of 7
this Act an unfair, abusive, or deceptive trade practice that is subject to enforcement 8
and penalties under the Maryland Consumer Protection Act; prohibiting an 9
employer from engaging in surveillance–based wage setting; and generally relating 10
to electronic shelving labels and surveillance–based price and wage setting. 11
BY adding to 12
Article – Commercial Law 13
Section 13–321 and 13–322 14
Annotated Code of Maryland 15
(2025 Replacement Volume) 16
BY repealing and reenacting, without amendments, 17
Article – Commercial Law 18
Section 14–4701(a), (w), (y), (aa), and (gg) 19
Annotated Code of Maryland 20
(2025 Replacement Volume) 21
BY repealing and reenacting, without amendments, 22
Article – Labor and Employment 23
Section 3–103(a) 24
Annotated Code of Maryland 25
(2025 Replacement Volume) 26
BY adding to 27
2 SENATE BILL 889
Article – Labor and Employment 1
Section 3–103(e)(7) and 3–718 2
Annotated Code of Maryland 3
(2025 Replacement Volume) 4
BY repealing and reenacting, without amendments, 5
Article – Tax – General 6
Section 11–206(c) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2025 Supplement) 9
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
That the Laws of Maryland read as follows: 11
Article – Commercial Law 12
13–321. 13
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “CONSUMER DATA ” INCLUDES PERSONAL DA TA AND SENSITIVE 16
DATA, AS THOSE TERMS ARE DEFINED IN § 14–4701 OF THIS ARTICLE; 17
(3) “DEVICE DATA” MEANS INFORMATION AB OUT A DEVICE OWNED 18
OR USED BY A CONSUMER, INCLUDING AVAILABLE BATTERY LIFE. 19
(4) “PROCESS” HAS THE MEANING STAT ED IN § 14–4701 OF THIS 20
ARTICLE. 21
(5) “PROFILING” HAS THE MEANING STAT ED IN § 14–4701 OF THIS 22
ARTICLE. 23
(6) “SURVEILLANCE–BASED PRICE SETTING” MEANS THE PRACTICE 24
OF SETTING THE PRICE OF CONSUMER GOODS OR SE RVICES BASED ON PROF ILING 25
OR OTHER PROCESSING OF CONSUMER OR DEVICE DATA. 26
(B) THIS SECTION APPLIES TO A MERCHANT THAT CONDUCTS BUSINESS IN 27
THE STATE OR PROVIDES CONSUMER GOODS OR SERVICES TO CONSUMERS IN THE 28
STATE. 29
(C) THIS SECTION DOES NOT APPLY TO A MERCHANT THAT OFFERS A 30
CUSTOMIZED PRICE TO A CONSUMER OR GROUP OF CONSUMERS WHEN TH E 31
DIFFERENT PRICES: 32
SENATE BILL 889 3
(1) ARE BASED ON DIFFEREN CES IN COST TO PROVI DE A GOOD OR 1
SERVICE TO DIFFERENT CONSUMERS; OR 2
(2) REFLECT A DISCOUNT OFFERED TO ALL CONSUMERS OF A GROUP 3
ON EQUAL TERMS CONSISTENT WITH ANTIDISCRIMINATION LAWS. 4
(D) A PERSON MAY NOT ENGAGE IN SURVEILLANCE–BASED PRICE SETTING 5
OR UTILIZE A THIRD PARTY TO ENGAGE IN SURVEILLANCE–BASED PRICE SETTING. 6
13–322. 7
(A) (1) IN THIS SECTION THE FOL LOWING WORDS HAVE TH E MEANINGS 8
INDICATED. 9
(2) “CONSUMER GOODS” HAS THE MEANING STAT ED IN § 13–301 OF 10
THIS SUBTITLE. 11
(3) (I) “ELECTRONIC SHELVING L ABEL” MEANS AN ELECTRONIC 12
AND WIRELESS PAPER DISPLAY THAT SHOWS PRODUCT AND PRICING INFORMATION 13
OF CONSUMER GOODS. 14
(II) “ELECTRONIC SHELVING LABEL” INCLUDES E–PAPER. 15
(4) “FOOD RETAILER ” MEANS A MERCHANT THA T OPERATES A 16
BUSINESS ESTABLISHMENT THAT: 17
(I) HAS A MINIMUM OF 15,000 SQUARE FEET; AND 18
(II) SELLS FOOD THAT IS EXEMPT FROM THE SALES AND U SE 19
TAX IN ACCORDANCE WITH § 11–206(C) OF THE TAX – GENERAL ARTICLE. 20
(5) “NONDIGITAL PRESENTATION OF PRICE” MEANS: 21
(I) A SIGN THAT OFFERS THE UNIT PRICE FOR ONE O R MORE 22
BRANDS OR SIZES OF A CONSUMER GOOD; 23
(II) A STICKER, STAMP, SIGN, LABEL, OR TAG INDICATING THE 24
PRICE OF A CONSUMER GOOD AFFIXED TO THE SHELF ON WHICH THE CONSUMER 25
GOOD IS DISPLAYED; OR 26
(III) A STICKER, STAMP, LABEL, OR TAG INDICATING THE PRICE 27
OF A CONSUMER GOOD AFFIXED TO THE CONSUMER GOOD. 28
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(B) A FOOD RETAILER MAY NOT USE ELECTRONIC SHELVING LABELS OR 1
ANY DIGITAL SHELF DI SPLAY TECHNOLOGY TO DISPLAY THE PRICE OF CONSUME R 2
GOODS. 3
(C) A FOOD RETAILER SHALL USE NONDIGITAL P RESENTATIONS OF PRICE 4
TO DISPLAY THE PRICE OF CONSUMER GOODS. 5
14–4701. 6
(a) In this subtitle the following words have the meanings indicated. 7
(w) (1) “Personal data” means any information that is linked or can be 8
reasonably linked to an identified or identifiable consumer. 9
(2) “Personal data” does not include: 10
(i) De–identified data; or 11
(ii) Publicly available information. 12
(y) (1) “Process” means an operation or set of operations performed by manual 13
or automated means on personal data. 14
(2) “Process” includes collecting, using, storing, disclosing, analyzing, 15
deleting, or modifying personal data. 16
(aa) “Profiling” means any form of automated processing performed on personal 17
data to evaluate, analyze, or predict personal aspects related to an identified or identifiable 18
consumer’s economic situation, health, demographic characteristics, personal preferences, 19
interests, reliability, behavior, location, or movements. 20
(gg) “Sensitive data” means personal data that includes: 21
(1) Data revealing: 22
(i) Racial or ethnic origin; 23
(ii) Religious beliefs; 24
(iii) Consumer health data; 25
(iv) Sex life; 26
(v) Sexual orientation; 27
(vi) Status as transgender or nonbinary; 28
SENATE BILL 889 5
(vii) National origin; or 1
(viii) Citizenship or immigration status; 2
(2) Genetic data or biometric data; 3
(3) Personal data of a consumer that the controller knows or has reason to 4
know is a child; or 5
(4) Precise geolocation data. 6
Article – Labor and Employment 7
3–103. 8
(a) Except as otherwise provided in this section, the Commissioner may conduct 9
an investigation to determine whether a provision of this title has been violated on the 10
Commissioner’s own initiative or may require a written complaint. 11
(e) (7) THE COMMISSIONER MAY INVE STIGATE WHETHER § 3–718 OF 12
THIS TITLE HAS BEEN VIOLATED ON RECEIPT OF A WRITTEN COM PLAINT OF AN 13
EMPLOYEE. 14
3–718. 15
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(2) (I) “AUTOMATED DECISION SY STEM” MEANS A SYSTEM , 18
SOFTWARE, OR PROCESS THAT USES COMPUTATION TO ASSIST, APPROXIMATE, OR 19
REPLACE HUMAN DECISION MAKING. 20
(II) “AUTOMATED DECISION SY STEM” INCLUDES A SYSTEM , 21
SOFTWARE, OR A PROCESS DERIVED FROM MACHINE LEARNIN G, STATISTICS, OR 22
OTHER DATA PROCESSIN G OR TECHNIQUES THAT UTIL IZE ARTIFICIAL 23
INTELLIGENCE, AS DEFINED IN § 3.5–801 OF THE STATE FINANCE AND 24
PROCUREMENT ARTICLE. 25
(3) “SURVEILLANCE–BASED WAGE SETTING ” MEANS THE USE OF 26
SURVEILLANCE DATA IN CONJUNCTION WITH AN AUTOMATED DECISION SYSTEM TO 27
OFFER OR INFORM A CUSTOMIZED WAGE FOR A SPECIFIC EMPLOYEE OR GROUP OF 28
EMPLOYEES IN THE STATE. 29
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(4) “SURVEILLANCE DATA ” MEANS DATA OBTAINED THROUGH 1
OBSERVATION, INFERENCE, OR SURVEILLANCE OF A N INDIVIDUAL RELATIN G TO 2
PERSONAL OR GENETIC INFORMATION, BEHAVIOR, OR BIOMETRICS OF THE 3
INDIVIDUAL OR A GROU P, BAND, CLASS, OR TIER TO WHICH THE INDIVIDUAL 4
BELONGS. 5
(B) THIS SECTION DOES NOT APPLY IF AN EMPLOYER: 6
(1) OFFERS A CUSTOMIZED WAGE BASED ON DATA S PECIFIC TO AN 7
EMPLOYEE THAT IS: 8
(I) DIRECTLY RELATED TO THE TASK THE EMPLOYE E WAS 9
HIRED TO PERFORM; OR 10
(II) BASED ON THE LOCATIO N WHERE THE EMPLOYEE WORKS 11
AND THE COST OF LIVING IN THAT LOCATION; AND 12
(2) BEFORE HIRING AN EMPLOYEE WHOSE WAGES ARE SET IN WHOLE 13
OR IN PART THROUGH A N AUTOMATED DECISION SYSTEM, DISCLOSES IN PLAIN 14
LANGUAGE TO THE EMPL OYEE WHAT DATA IS CONSIDERED AND HO W THE 15
AUTOMATED DECISION SYSTEM CONSIDERS THE DATA. 16
(C) AN EMPLOYER MAY NOT E NGAGE IN SURVEILLANC E–BASED WAGE 17
SETTING. 18
(D) (1) WHENEVER THE COMMISSIONER DETERMIN ES THAT THIS 19
SECTION HAS BEEN VIOLATED, THE COMMISSIONER SHALL: 20
(I) TRY TO RESOLVE ANY I SSUE INVOLVED IN THE VIOLATION 21
INFORMALLY BY MEDIATION; OR 22
(II) ASK THE ATTORNEY GENERAL TO BRING AN A CTION ON 23
BEHALF OF THE APPLICANT OR EMPLOYEE. 24
(2) THE ATTORNEY GENERAL MAY BRING AN ACTION UNDER THIS 25
SUBSECTION IN THE CO UNTY WHERE THE VIOLATI ON ALLEGEDLY OCCURRED FOR 26
INJUNCTIVE RELIEF, DAMAGES, OR OTHER RELIEF. 27
Article – Tax – General 28
11–206. 29
(c) (1) Except as provided in paragraph (2) of this subsection, the sales and 30
use tax does not apply to a sale of food for consumption off the premises by a food vendor 31
SENATE BILL 889 7
who operates a substantial grocery or market business at the same location where the food 1
is sold. 2
(2) The exemption under paragraph (1) of this subsection does not apply to: 3
(i) food that the vendor serves for consumption on the premises of 4
the buyer or of a third party; or 5
(ii) food for immediate consumption. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2026. 8