What is dynamic pricing and could it impact your grocery bill?

(NEXSTAR) – When shopping, you, most likely, want to pay the same (hopefully low) prices as everyone else shopping at the same time for the same item or experience. Some, however, are concerned that, as technology advances, that won’t be the case. 

The practice is known as “dynamic pricing.” 

Maryland is poised to be the first state to prevent it from appearing at grocery stores. A bill passed earlier this year, which was part of Governor Wes Moore’s legislative agenda, focuses on retailers’ use of technology to change the prices of goods throughout the day or those shown to different customers. 

In a hearing earlier this year, Moore pointed to the expanding use of digital price tags at retailers, in addition to “cameras … watching aisles” and apps transitioning to “curated experiences.” 

But should you be concerned?

What is dynamic pricing? 

According to the Harvard Business School, dynamic pricing takes into account “evolving market trends,” like inventory, demand, and pricing at competitors, and can be created with the help of digital platforms. It can be helpful to boost sales, maximize profit, and adjust to “market fluctuations.” 

Hotels already use dynamic pricing, adjusting room rates based on “demand, timing, and events,” the 2024 blog post explains. Because hotels are typically upfront about the fees, though, “customers are more inclined to follow through with bookings.” Upfront dynamic pricing “can reduce the likelihood of deterring customers from prices that maximize profits,” the post adds.

Rideshare apps and flight-booking sites are similar, though the practice is more commonly referred to as surge pricing on these platforms. This gives way to recommendations on the best day or time to book flights, for example.

There are concerns, however, that dynamic pricing will be used against consumers,........

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