If dynamic pricing hits grocery stores, Maryland shoppers won’t buy food anymore—they’ll be tracked, analyzed, and squeezed by invisible machines that raise prices precisely when hunger, weather, or paydays leave no escape.
I walk into a grocery store expecting the usual ritual.
Grab a cart. Nod at the automatic doors. Drift toward the cereal aisle like a
sleepwalker with a list. Prices used to sit still, quiet and dumb, printed on
paper tags like they were ashamed to move. Now imagine those prices blinking
back at me, alive, twitchy, watching. That is the future being debated in
Maryland, and it smells less like fresh bread and more like a trap.
The warning came wrapped in a calm news voice, but I
heard the alarm screaming underneath. Electronic shelf labels are creeping in.
Algorithms already track how we shop. Put the two together and you don’t have a
grocery store anymore. You have a live market experiment where every shopper is
data and every dollar is fair game. If this technology spreads unchecked, I
won’t be buying food. I’ll be hunted by invisible pricing machines that watch,
learn, and squeeze, turning a normal run for milk into a real-time financial
ambush.
We’ve seen this movie before. Rideshares wrote the
script. Airlines perfected it. Sports teams cashed the checks. The price jumps
when demand spikes. The spike happens when people have no choice. Miss a
flight, need a ride home in the rain, want to see your kid’s favorite team.
Surge pricing isn’t an accident; it’s a strategy. The same math that decides
when to raise an Uber fare can decide when to raise the price of eggs. The
difference is that you can skip a concert. You can’t skip dinner.
Supporters of this tech say it’s efficient. I say
efficiency is just a clean word for extraction. Algorithms don’t have empathy.
They have objectives. Increase margin. Optimize yield. When retailers map
shopping habits, time of day, weather, local events, and income patterns, they
aren’t guessing. They are predicting. And prediction is power. When the fox
writes the rules, the henhouse becomes a spreadsheet.
There’s a reason people recoil when they hear that food
prices could change by the hour. Food is not a luxury. It is survival. In basic
economics, markets work when buyers and sellers share information. Dynamic
pricing breaks that balance. The seller knows everything. The buyer knows
nothing until the register beeps. That’s not a market; that’s a stacked deck.
History backs this up. During disasters, price spikes
follow like clockwork. After Hurricane Katrina, investigations documented
dramatic increases in gasoline, ice, and food prices in affected regions.
Economists argued about incentives while families argued about dinner. The
public reaction was fierce enough that states tightened price-gouging laws. The
lesson was simple and brutal. When necessities get priced like stocks, trust
collapses.
More recently, digital markets have shown how fast this
can go wrong. Investigations into online retail pricing found that some
platforms adjust prices multiple times a day based on demand signals and
consumer behavior. A well-known study of e-commerce pricing patterns showed
frequent price discrimination, where different users saw different prices for
the same product based on browsing history and location. That was for
electronics and books. Now imagine it for bread and baby formula. The hand
that feeds you shouldn’t also be picking your pocket.
This is why the debate in Maryland matters. Governor Wes
Moore and state leaders aren’t arguing about technology in the abstract.
They’re arguing about boundaries. The proposed Protection from Predatory Price
Act aims to freeze grocery prices for at least one business day and block the
use of surveillance data for price manipulation. Critics call it heavy-handed.
I call it a seatbelt before the crash.
Retailers already use electronic shelf labels. That part
is real and documented. The labels save labor and reduce errors. Fine. The
danger isn’t the label; it’s the wire behind it. Once prices can change in
seconds, temptation follows. A heat wave hits. Bottled water creeps up. A
snowstorm rolls in. Bread ticks higher. Paydays cluster on Fridays. By Friday
afternoon, the algorithm smiles. No one announces the increase. No clerk shrugs
in apology. The shelf just updates, silent as a pickpocket.
We’ve seen how fast public trust erodes when companies
admit to “testing” dynamic pricing. In early 2024, a major fast-food chain
floated the idea of dynamic pricing using digital menus. The backlash was
immediate and vicious. Customers heard what I hear. If you’ll do this to a
burger, you’ll do it to anything. The company walked it back, but the signal
was clear. The industry is thinking about it because the math works.
And the math always works best on the poor. Studies on
price sensitivity show that lower-income shoppers are more likely to shop
during off-hours, more likely to buy staples, and less able to absorb sudden
increases. An algorithm trained on behavior will learn that pain point fast. A
rising tide lifts yachts, not rowboats. Supporters say competition will
keep prices honest. That’s a fairy tale from a different century. Grocery
markets are consolidated. A handful of chains dominate regions. If they all
install the same tech, the same vendors, the same analytics, competition
becomes theater. Prices won’t collude in smoke-filled rooms. They’ll harmonize
in the cloud.
The fines in the proposed law—up to $10,000 for a first
offense and $25,000 for subsequent ones—sound big, but compared to grocery
revenues, they are warnings, not weapons. Still, enforcement matters. Treating
violations as unfair or deceptive trade practices puts teeth behind the words.
It tells retailers that food is different. It tells consumers someone is
watching the watchers.
I don’t hate technology. I hate asymmetry. I hate systems
that smile while they squeeze. I hate the idea that a parent standing in a
cereal aisle could be outgunned by code written a thousand miles away. The
future doesn’t have to be this way. We can draw lines. We can say that some
prices should stand still long enough for people to breathe. Because once food
pricing goes fully dynamic, the grocery store stops being a place of choice and
becomes a place of exposure. Every step is tracked. Every pause is priced.
Every need is monetized in real time. That isn’t shopping. That’s hunting
season, and the shoppers are the prey.
If Maryland gets this wrong, the blinking labels won’t
just show prices. They’ll show who we decided to protect and who we decided to
test. And once the machines learn how to squeeze, they never forget.
As a side note for regular
readers, I’ve also written “Swept
Away: The Heartbreaking Camp Mystic Flood That Shook America”, now available on Google Play Books. You can also
read it here on Google Play: Swept
Away.

No comments:
Post a Comment