New Democratic Party Leader Avi Lewis is demanding the federal government ban algorithmic pricing, calling the retail practice "downright creepy." Lewis stated that "Big Tech is teaming up with retailers, including grocery giants, to spy on Canadians and gouge them even more." The NDP plans to table a motion in Parliament to ban "surveillance pricing."
Algorithmic pricing, also known as dynamic pricing, uses AI and data to adjust prices based on consumer attributes, demand, or demographic details.
The United Food and Commercial Workers Union echoed the call, with president Barry Sawyer stating, "These systems are designed to maximize profit, not fairness."
Recent polling indicates a majority of Canadians want algorithmic pricing banned or regulated, with half finding the practice unfair due to potential price discrimination for the same product.
Last year, the Competition Bureau investigated AI-driven algorithmic pricing in Canadian real estate rentals, raising concerns despite a lack of evidence of anti-competitive behavior.
Fast-food chain Wendy's faced backlash in 2024 for attempting to introduce dynamic pricing. Instacart also ended a program where customers saw different prices for the same product.