Most Canadians want the government to ban or regulate algorithmic pricing, a new poll suggests — with half of respondents saying the practice is unfair because it can result in people paying different prices for the same product.
The Abacus Data poll, which was conducted online and can’t be assigned a margin of error, polled 1,931 Canadians on algorithmic pricing.
Around half (52 per cent) of those polled by Abacus said the practice should be banned and 31 per cent said it should be allowed but more strictly regulated.
David Coletto, CEO of Abacus Data, said that while most people aren’t necessarily familiar with the term, most have felt the effects of algorithmic pricing.
“I would say most Canadians feel they have experienced this in some way,” he said.
“The reason why there is so much sensitivity around it is … basic fairness. It goes to a core principle that … for the same product or the same service, the price should be the same for everybody.”
What is algorithmic pricing?
On Tuesday, the Manitoba government said it would prohibit retailers from using personal data to increase prices for specific consumers. The rule would apply both in person and online.
“Algorithmic pricing, otherwise known as dynamic pricing, is when companies use AI and data to set different prices for consumers, depending on whatever attributes they set up,” retail analyst Bruce Winder said.
This could be based on anything from the income levels and demographic details of the prospective customer to the demand for the good or service.
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“There’s a bit of a black box in terms of what are they looking at in that algorithm. Is it my income? Is it where I live? My postal code? Is it my race or ethnicity?” Winder said.
Currently, there are no explicit regulations against dynamic pricing, but consumers can report unfair or discriminatory practices to the Competition Bureau, said University of Guelph food economist Mike von Massow.
“If people complain, then they will investigate,” von Massow said.
Charging people more on the basis of demographic differences might be seen as prejudice, he added.
Last year, the Competition Bureau also investigated the possible use of artificial intelligence-driven algorithmic pricing in Canadian real estate rental markets.
In November, it said that while it hasn’t found evidence that using computer software to recommend rent prices reaches the level of anti-competitive behaviour, it remains concerned about possible issues.
Some who took part in the Abacus poll expressed worries about the potential for discrimination, a lack of transparency, the effect on the affordability of daily essentials, and privacy and ethical concerns associated with consumer data collection.
While changing prices depending on demand or time of day is not new in retail, using AI or technology is, von Massow said, adding that some grocery stores are attempting to use algorithms to set prices for loyalty card holders.
“If you are a loyalty card member, on your app, on your phone, you will get offers for deals on specific things. That is algorithmic pricing. They’re looking at what you’ve bought before, they’re looking at where you are geographically and they’re offering you something that they think you might want,” von Massow said.
Many Canadians have already experienced one form of dynamic or algorithmic pricing – when they book a ride on an app like Uber, Winder said.
“If you book an Uber, and there’s not many drivers on the road during a snowstorm, your rates are going to go way up. But if you book an Uber on a nice sunny day, the weather’s great, there’s lots of drivers on the road, your rate will be a little less,” he said.
“We have something similar to this across airlines, hotels and ride sharing. And it’s not about someone’s demographics, or wealth, or income. It’s about time of day and capacity.”
For example, an airline or hotel may automatically raise prices during peak travel season.
While customers have come to expect wild price swings for ride-sharing services and travel, Winder said brands will have a harder time selling it for more basic items, such as groceries or toilet paper.
“Brands can’t have that wide a swing for basic items that we use every day or else their consumers are going to resent them for that,” he said.
“I remember during the pandemic, one store increased the price of hand sanitizer to an incredibly high amount, and consumers just brutalized them on social media. You can’t be seen as a brand or retailer of taking advantage of your customers; that never works in retail.”
Does food cost more with algorithmic pricing?
Algorithmic pricing has caused a stir in food retail as well, with fast-food chain Wendy’s facing backlash from some consumers in 2024 when it tried to introduce dynamic pricing.
In December 2025, online grocery platform Instacart said it was ending a program where some customers saw different prices for the same product ordered at the same time from the same store when using the delivery company’s service.
A report from Consumer Reports and two progressive advocacy groups, Groundwork Collaborative and More Perfect Union, said Instacart offered nearly three out of every four grocery items to shoppers at multiple prices in an experiment.
For the report, researchers conducted an independent experiment involving 437 shoppers in live tests across four cities in the U.S. It found that dynamic pricing would mean price swings of around US$1,200 on groceries for the average American family.
“When prices are no longer transparent, shoppers can’t comparison-shop. When prices are no longer predictable, shoppers can’t properly budget,” the report said.
— with files from The Canadian Press and The Associated Press
“But if you book an Uber on a nice sunny day, the weather’s great, there’s lots of drivers on the road, your rate will be a little less”
No, you pay the standard rate. Don’t even pretend you get a discount. That’s all this is. Surge pricing with marketing.
Even if this starts as a deal for lpw income people… i don’t even need to finish this sentence
Gas station pricing is what troubles me. The latest was a station that had gas at $1.66/L then a half hour later it was 1.54/L. Then in the evening it was back at 1.66/L.
Capitalism on steroids is still capitalism.
And yet the darling of the younger crowd, Uber, door dash, skip the dishes, etc, uses it all the time, along with other web based services. Not a word about them. To funny, the hypocrisy is delicious.
You complainers do know that prices can, and are, manually changed in a store all the time. Do you also understand that the price of a product goes up the farther it has to be transported?
Are there any real consumer protections in Canada?
I usually don’t like government interference, but the grocery monopolies are getting away with far too much !!
One more reason to use self check-out, you can slowly scan each and every item checking the prices during the process.
One way to teach them a lesson about this practice, is to slow down our orders at fast food places, or even the grocery stores. If we have to double check the pricing all the time, that will slow things down and perhaps ultimately lower their profits and dissuade them from this underhanded practice.
They can also use this to test pricing during surge times, and then when they see people are willing to pay those higher margins, they can say “hey, they will pay these higher prices, so let’s just increase all the time”
es, an app could notify shoppers when to avoid or hit specific stores, fighting back against algorithmic price surges with real-time tracking and alerts like “Skip Walmart now—essentials up 15%.” It’s feasible using crowdsourced data and price monitoring tech (similar to GasBuddy), empowering consumers without breaking laws. Let’s build it to level the playing field!
Lets create an app that could notify shoppers when to avoid or hit specific stores, fighting back against algorithmic price surges with real-time tracking and alerts like “Skip Walmart now—essentials up 15%.” Now that would level the playing field.
This is exactly why those with power, want social credit scores. They can herd us and punish us and carrot and stick us, anyway they want. Heck, they could even give media better pricing so they stop complaining about the issue.
I’m more concerned that food prices will go up at lunch time or groceries will cost more on the weekend (or when ever most people do their grocery shopping). And if you don’t think that could happen, you are wrong. Fast food restaurants already started testing ‘surge’ pricing using electronic menus in restaurant. Just wait until that tomato’s price is not defined until you get to the check out. So let’s protect the essentials.
I agree with, DipDip.Call it surge pricing or dynamic pricing- predatory pricing pretty much sums it up. I’m not sure that paying cash will help. You might just end up paying the highest rate. There is a certain grocery chain in western Canada who has 2 tiered pricing on most items in their physical stores. Folks with a loyalty card pay a much lower rate than those without. Paying cash wouldn’t change that. But even that’s better than online shopping where all bets are off. I’d love to see this practice banned.
Does anyone really believe prices will go down. Just look at the price gauging at Loblaws and Metro
At anonymous
Try using cash at a partners venue. Been banned for a long time. Not excepted. So in other words cash is useless if you head to a major venue. This trend will continue through the partner companies.
It’s just another scam .. using user data? Setting the price to what the customer will pay? Guess if the data shows you have more dollars than others do you pay more ? Besides what good is this poll? The bank of Canada had a public consultation the people overwhelming showed the did not want it. Well the bank did it anyway as the majority disapproved it.
use cash ….that solves the problem
Call it what it is, predatory pricing
Most stores asks me lately if I want to round UP my bill to the nearest dollar!!! No, I don’t to do that on top of all the taxes I have to pay but I wouldn’t mind to round DOWN to the nearest dollar.
The fact that companies were allowed to do this in the first place, raises alot of questions.
Lower costs for some goods at stores IF you belong to a company that you “sell” your information to. Your bought, you get lower priced goods and the company then SELLS your shopping habits to other companies for more money. Imagine, IF a company wants their product put on a middle row in a grocery store they have to PAY MORE because that is where we all look first. No one looks at the bottom row so we buy fewer goods offered on the bottom row so companies pay less.