What Maryland's New Rules Mean for Baltimore's Advertising Community

Maryland's advertising community is entering a new era where privacy, transparency, and consumer protection have moved from the legal department's checklist to the center of how we conceive, sell, and measure campaigns. 

For agencies and marketers in Baltimore, three regulatory developments demand your attention: a comprehensive state privacy law with real teeth, a first-in-the-nation tax on digital advertising, and expanded consumer protection authority at the city level. Together, they're fundamentally reshaping what responsible advertising looks like in Maryland. 

Privacy by Design Is Now the Baseline 

The Maryland Online Data Privacy Act (MODPA) ranks among the most restrictive comprehensive privacy laws in the country, and it hits closer to home than you might think. Unlike laws in other states that primarily affect tech giants, MODPA's thresholds are tied to how many Maryland consumers you touch—which means many mid-sized agencies and brands fall within its reach. 

What MODPA changes for your work: 

• Sensitive personal data cannot be sold. Period. 

• Targeted advertising and data sales are prohibited when you know—or should know—the consumer is under 18. 

• Universal opt-out signals must be honored, and companies must embrace data minimization, collecting only what's strictly necessary. 

For Baltimore agencies, this isn't just a compliance burden. It's a creative constraint that can become a competitive advantage. Teams that understand exactly what data is in play, why it's needed, and how to explain it clearly to consumers are better positioned to earn trust and win sophisticated clients who value privacy-forward thinking. 

The Digital Advertising Tax: Transparency Meets Cost Pressure 

Maryland remains the only state with a tax specifically targeting digital advertising revenues. The Digital Advertising Gross Revenues Tax applies to large entities with significant Maryland digital ad revenue and high global annual revenue, with rates ranging from 2.5% to 10%. 

A 2025 federal appeals court ruling changed the game. The court struck down Maryland's attempt to ban pass-through language, meaning companies can now disclose the tax as a separate fee or line item on invoices. Meanwhile, new Comptroller guidance effective January 1, 2026 has tightened recordkeeping requirements and clarified that taxable digital advertising services must be both programmatic and visually conveyed. 

What this means for your agency: 

Most independent Baltimore agencies won't pay the tax directly. But nearly everyone will feel its effects through platform pricing, vendor contracts, and client conversations. When a Maryland-specific digital ad tax appears on an invoice, understanding its origins helps you maintain transparency with clients and protect your margins. 

Baltimore's Consumer Protection Lens Gets Sharper 

At the local level, Baltimore City has expanded its consumer protection authority, empowering the Law Department to pursue unfair, deceptive, or abusive practices that harm residents. This extends beyond traditional false advertising enforcement into sharper scrutiny of how claims, disclosures, and offers are presented. 

Pay special attention to: 

• Subscription offers and free trials 

• Financing promotions 

• Any messaging around pricing, benefits, or endorsements aimed at Baltimore residents 

Ambiguous copy carries both enforcement and reputational risk. Creative work and compliance are now inseparable. Your headlines, disclaimers, and checkout flows can all have local legal implications. 

Government Relations as Bridge, Not Just Watchdog 

These developments underscore why government relations matters for our industry—and why it's about more than tracking legislation. It's about interpreting how laws, court decisions, and enforcement trends shape the daily reality of agencies, brands, and media partners. 

In Baltimore, effective government relations means: 

• Translating complex privacy and tax rules into practical guidance for campaign planning and data strategy 

• Helping agencies anticipate how regulators and city leaders think about fairness, transparency, and youth protection 

• Identifying opportunities for agencies to partner with government on civic-impact campaigns supporting public health, safety, and democratic participation 

When our industry engages constructively with these frameworks, regulation becomes less of a threat and more of a foundation for sustainable, trust-driven marketing. 

What Baltimore Agencies Can Do Right Now 

Map your data flows and tighten privacy notices in light of MODPA, especially for youth-focused campaigns. Know what data you're collecting, why, and how you're protecting it. 

Review contracts and billing templates for references to digital advertising taxes, fees, and Maryland-specific pricing. Don't let surprise line items damage client relationships. 

Incorporate consumer protection and disclosure considerations into creative briefs when campaigns target Baltimore residents. Make compliance part of the creative conversation from day one. 

By treating these issues as part of strategic planning rather than last-minute legal checks, you protect your clients, strengthen your business, and play a constructive civic role in Baltimore's information ecosystem. 

AAFB Members: Have questions about how these regulations affect your agency? Reach out to AAFB's Government Relations committee at advocacy@baltimoreadvertising.com. We're here to help you navigate this evolving landscape. 

Submitted by Ronaldo J. Sellers, Government Relations Chair, AAF Baltimore