A lot has been written about surveillance pricing of late. But is it a real thing in Canada or a political football used to score points in an affordability crisis?
There has been a tremendous amount written in Canada recently on the threat of surveillance pricing in grocery retail. But much like Big Foot & The Easter Bunny, the use of surveillance pricing systems can’t be found in the Great White North. At least not within Loblaw, Empire & Metro. The big 3 Canadian grocers have publicly said they are not using it. So why all the articles, op-eds & interviews?
What is surveillance pricing?
Let’s start with what surveillance pricing means. Surveillance pricing or algorithmic pricing has become a buzzword over the last few months and involves the use of specific consumer data points, found through phones and on the web, to charge customers different (higher) prices for food based on things like their postal code, their search history, their purchase history and other demographic signals. If I live in Forest Hill, I would pay more for tomatoes than someone who lives in Parkdale.
This is different than dynamic pricing which has traditionally meant that service providers such as ride-share apps, hotels & airlines charge everyone the same price, but that price varies with different surpluses or deficits in their capacity or inventory levels. That’s why you can get a great deal on a tropical resort package at the last minute. The hotel has empty rooms and they want to get something for them vs. see them sit empty.
Why the sudden interest?
So, what has caused the sudden interest in surveillance pricing? In late 2025, delivery company Instacart faced public allegations of using surveillance pricing during tests with select U.S. grocers. The company denied the allegations but said it would end the test immediately. The matter drew widespread attention & significant criticism, rightly so. U.S. Law makers demanded more information on the test.
In 2026, the topic took on a life of its own. In Canada the newly minted Federal NDP leader, Avi Lewis made a ban on surveillance pricing a key policy issue for his platform. Manitoba’s NDP government has put forth a motion to ban the practice. Mainstream media platforms ran numerous stories on the concept. I was interviewed for several of them. Left wing op-eds filled the internet. The sky was falling. It was the end of days. The dystopian future from a Netflix series was finally here.
Be Practical
But think about the reality of administering surveillance pricing, even if someone wanted to do it. Customers who are overcharged would find out through social media, discussions with friends & family and AI search. Prices are easily compared across numerous platforms. It would stick out like a sore thumb. It would be dumb for grocers to engage in surveillance pricing as competitors would eat them for lunch. Governments would fine them. Their earnings and stock valuation would crumble. The industry has a way of self-regulating do’s & don’ts itself through the court of public opinion. Let the marketplace punish any offenders.
It is also important to differentiate surveillance pricing from offer personalization. It is common and accepted practice for all retailers to use customer data to create personalized offers that save customers time and offer greater relevance for them. Not to increase prices, but to improve engagement & advertising efficiency. Customer relationship management software has been around for decades and adds value for both customers and retailers alike. If governments are overly broad in adding more regulations, they could affect retailer’s ability to offer discounts.
The Politics of Pricing
The issue has been used as a political façade meant to deflect blame for Canada’s affordability crisis. The problem with that approach is that all big 3 Canadian grocers have denied using surveillance or algorithmic pricing to charge customers different prices. Why? Because the loss of trust & goodwill that such a move would create is not worth it. Each of the 3 grocers realize they are under the microscope from governments & consumers alike as it relates to pricing and none of them would dare bring negative attention to themselves. I think each also realizes that surveillance pricing crosses the line of acceptability in Canadian society.
Governments at all levels have had a hand in reducing affordability in Canada over the last decade or so. From keeping interest rates unnecessarily low in the 2010’s and creating a housing bubble to failing to drive our economy through resource commercialization to wage stagnation. Falling productivity kills our standard of living. Much of what we face is self inflicted. But it can be easier to blame others and suggest a false solution vs. truly admitting mistakes and acting to solve the root cause of the problem. That’s politics 101.
Conclusion
So, just like Big Foot & The Easter bunny, much has been written about surveillance pricing in Canada. But these stories are at best fiction & at worst propaganda. Growing up in the 1970’s, Big Foot was a hot topic. They even created a Six Million Dollar Man double episode about him. Still, I have yet to see him signing autographs & taking selfies in Banff. As for the Easter Bunny, I have several beautiful little rabbits outside my house in West Toronto. I see them come out at night. Still waiting for one of them to put on clothes & bring me some chocolate.
(Bruce Winder is an author and retail analyst)
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