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Bill would let consumers opt in to precise location advertising, industry says; retailers warn of unintended harm
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Summary
SB 569 would allow use of precise geolocation data for targeted advertising only with a consumer's recorded affirmative consent; ad-tech firms supported the change as a consent-preserving fix, while retailers and trade groups warned it could restrict local geofencing ads and harm small merchants.
Sen. Arthur Ellis introduced SB 569 to impose limits on collection and processing of precise geolocation data for advertising and to require affirmative, recorded consumer consent when that data is used for targeted marketing.
Proponents from the ad-technology sector argued the bill would restore a consent-based pathway that ModPA currently restricts, allowing consumers to opt in to location-enabled benefits such as store coupons or local offers. Jason Knapp (InMarket) and Nick Meyer (Network Advertising Initiative) said the bill preserves consumers' opt‑out rights while enabling small ad-supported apps to offer location services with explicit consent.
Retailers and the Maryland Retailers Alliance expressed concern that the bill could restrict geofencing that many small businesses use to reach local customers, and asked for clarification about whether the proposal would materially limit local advertising or simply require clearer consent mechanisms. Committee members requested written feedback from retail stakeholders and asked sponsors to refine language about "precise" location (committee discussion defined it roughly as within one‑third of a mile, or a radius of about six football fields).
The hearing produced significant back-and-forth about balancing privacy protections, consumer choice, and small-business advertising needs. No vote was taken; proponents and opponents agreed to continue technical discussions.
