AUGUSTA – Today, Rep. Marc Malon, D-Biddeford, will present legislation before the Legislature’s Housing and Economic Development Committee that would prevent Maine grocery stores and restaurants from using dynamic pricing – a form of price gouging in which businesses increase their prices during peak demand hours. The public hearing is set for 3:30 p.m. in the State House, Room 126.
For example, under this bill, grocery stores like Hannaford and Shaw’s would be prohibited from intentionally surging prices during their busiest times, like during the hours of 4-7 p.m. on weekdays when many people stop by to pick up food for dinner after work. Fast food chains like Wendy’s and McDonald’s would also be prohibited from charging extra based on popular time windows for customers.
“No Mainer should be forced to pay higher prices for their groceries or other essentials just because of the time they choose to shop,” said Malon. “Too many working Mainers are already struggling to make ends meet because of high costs. LD 1597 would provide a critical safeguard against big corporations exploiting Maine consumers by intentionally and artificially inflating their prices.”
The use of dynamic pricing has increased rapidly over the last few years. Corporations like Kroger and Walmart have already been criticized for their use of electronic shelf labels (ESL), which allow businesses to digitally display and adjust the price of a product based on location and demand. Additionally, the Federal Trade Commission has called for companies to provide transparency in their use of surveillance pricing, a form of dynamic pricing that utilizes artificial intelligence – including facial recognition – to adjust costs based on individualized information.
The bill defines dynamic pricing as “The practice of causing a price for a good or a product to fluctuate based upon demand, the weather, consumer data or other similar factors including an artificial intelligence-enabled pricing adjustment.” It does not include discounts, specials or market pricing for goods or products traditionally set by market conditions, such as seafood.
Under Malon’s proposal, a Maine business found to be actively utilizing dynamic pricing would be subject to the Maine Unfair Trade Practices Act, which is enforced by the Maine’s Attorney General's Office.
Rep. Malon is serving his second term in Maine’s House of Representatives and represents a portion of Biddeford. He serves on the Housing and Economic Development Committee and the Veterans and Legal Affairs Committee.
Contact:
Brian Lee (Malon) | 305-965-2744