PricingLawsby Klary
Whitepaper

Exemptions

Can We Still Offer Personalized Discounts If Prices Never Go Up?

Often yes. Maryland only prohibits higher personalized prices, and most laws exempt bona fide discounts. New Jersey requires discount eligibility criteria to be publicly disclosed and applied uniformly, and New York’s § 349-a disclosure applies whether the price is higher or lower.

Last verified Oct 6, 2026 · Not legal advice

How Does Each Law Treat Personalized Discounts?

  • Maryland: targets higher prices; promotions are exempt.
  • New Jersey: discounts must use publicly disclosed, uniform criteria.
  • New York § 349-a: the disclosure applies to any price set by an algorithm using personal data.
  • FTC proposal: disclosure where a common price is expected.

Can We Raise the Base Price and Then Discount It?

Consumer Reports warned that businesses could raise list prices and then offer personalized discounts. Regulatory scrutiny concerns the net price each customer pays, rather than the discount alone.

Laws Cited in This Guide

  • Maryland HB 895

    Since October 1, 2026, Maryland bars large food retailers and third-party delivery services from using dynamic pricing or personal data to charge a consumer a higher price for tax-exempt food.

  • New Jersey Fair Price Protection Act

    From August 1, 2027, New Jersey bans surveillance pricing for groceries and household goods under its Consumer Fraud Act.

  • NY Algorithmic Pricing Disclosure Act

    Since November 10, 2025, businesses that set prices with an algorithm using a New York consumer’s personal data must show, next to the price: “THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA.” The Attorney General enforces it, with penalties up to $1,000 per violation.

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