Democratic lawmakers in Augusta have brought forward a bill that looks to enact a statewide prohibition on “dynamic pricing” in restaurants and grocery stores.
For the purposes of this bill, dynamic pricing refers to the practice of adjusting the price of product based on various external factors, including “demand, the weather, [or] consumer data,” as well as an “artificial intelligence-enabled pricing adjustment.”
Still permitted under this ban would be discounts, special pricing set for a limited time period — such as an early bird special or lunch menu — and seafood market pricing.
Engaging in dynamic pricing would be considered an “unfair trade practice” under the Maine Unfair Trade Practices Act.
In introducing this bill to the Housing and Economic Development Committee Monday, Rep. Marc Malon (D-Biddeford), the bill’s sponsor, argued that this bill “seeks to get ahead of a rising problem nationally before it takes hold in Maine.”
“The first question one might reasonably ask, as I did, is whether this is happening in Maine,” said Rep. Malon. “The answer is, as far as I can tell, not yet, which his is all the more reason to put safeguards in place now, particularly since it is happening with increasing frequency elsewhere in the country.”
“We have an opportunity to pass forward-thinking legislation that will ensure more of Mainers’ hard-earned money stays in their wallets, instead of being siphoned into the bank accounts of greedy corporations,” added cosponsor Rep. Kilton M. Webb (D-Durham).
Several other lawmakers also submitted written testimony in support of this legislation expressing similar concerns over the potential impact of dynamic pricing if it were to be implemented in Maine.
Representatives of Maine’s hospitality and business communities, however, offered testimony in opposition to this proposal, raising concerns about the potential unintended consequences of such restrictions.
Nate Cloutier of Hospitality Maine, for example, argued that “this seems like a solution in search of a problem.”
“There’s been no outcry from customers and no documented widespread abuse,” said Cloutier. “Yet the bill introduces vague and confusing parameters that could make it harder for businesses to respond to day-to-day, real-world conditions and adjust prices accordingly.”
He went on to explain that this legislation would open the door for “legal confusion” due to a lack of clarity over where the line falls between regular price adjustment and dynamic pricing.
“A one-size-fits-all pricing model doesn’t reflect how the hospitality industry works in Maine. We’re a tourism-driven, Weather-sensitive state,” said Cloutier. “Staffing changes by the hour. Deliveries get delayed. Customer traffic ebbs and flows. Restaurants need the ability to respond in real-time and often cannot wait until tomorrow.”
He also noted that this would make Maine an outlier nationwide, as no other states currently regulate pricing in this manner.
The Maine State Chamber of Commerce also testified in opposition to this bill, suggesting that dynamic pricing is a “legitimate business strategy” that may be employed to “lower prices during off peak times, reduce waste, and help small grocers
manage their inventories,” especially when “dealing in a perishable-goods environment.”
The Chamber also pushed back on the prohibitions against using artificial intelligence tools to guide pricing fluctuations.
“[This bill] would discourage businesses from exploring and using innovation with respect to pricing technologies. Artificial intelligence (Al) is the way of the future and Maine companies will need to utilize these tools to stay relevant,” the Chamber said. “Imposing restrictive regulations on grocers ability to use AI related to pricing technologies sets Maine back and restricts innovation. A lot of the dynamic pricing systems today are designed to increase transparency and consumer trust.”
The Maine Grocers and Food Producers Association also testified in opposition to this bill, expressing a “fear” that the exceptions listed in the law may “inadvertently miss” a wide range of practices regularly employed by businesses in the industry.
“These are not exploitative tactics — they are standard retail strategies that help businesses keep prices low, reduce waste, and respond to consumer needs. Far from being predatory, these tools help consumers save money and improve operational efficiency,” the Association said. “Prohibiting dynamic pricing could discourage innovation, increase costs, and make it harder for businesses to adapt to market realities.”
During his testimony, the sponsor of LD 1597 referenced a similar bill under consideration by the Committee, introduced by Senate President Mattie Daughtry (D-Cumberland), and suggested that these proposals could likely be merged into “one legislative vehicle.”
At this juncture, it is not immediately clear what such a merger would look like, although more details can be expected to emerge from the Committee in the near future as they continue to workshop this legislation.
A work session for LD 1597 has been scheduled by the Housing and Economic Development Committee for Thursday, May 15 at 9am.
