Surveillance Pricing in Canada Raises Consumer Transparency Concerns

Date:

Share post:

By Jake Okechukwu Effoduh

Parliament voted down a motion on April 15 to ban a practice most Canadians have never heard of, but that retailers are already rolling out: surveillance pricing.

Also called algorithmic personalized pricing, the practice uses personal data to estimate how much consumers are willing to pay, then adjusts the price accordingly. Two shoppers, same store, same item: two different prices, generated by data neither of them can see.

The NDP motion urges the government to prohibit surveillance pricing both in stores and online. The Liberals and Conservatives voted it down. NDP leader Avi Lewis had called the practice “unfair” and “downright creepy” at a news conference days earlier.

A poll by Abacus Data conducted in March found that while most Canadians are not familiar with the term, when the practice was explained to them, 52 per cent said it should be banned. Another 31 per cent of the Canadians surveyed said it should be allowed but more strictly regulated.

For Canadians struggling with cost-of-living pressure, the practice is spreading among retailers, and the laws meant to protect consumers were not designed to catch it.

Not the same as surge pricing

A useful distinction first. Dynamic pricing, the kind used by airlines, hotels and rideshare companies, adjusts based on conditions like demand, the time of day or weather, and applies the same algorithm to every customer equally.

Uber’s surge pricing is the textbook example of dynamic pricing: every rider in the same area at the same moment sees the same multiplier. Annoying? Perhaps. Personalized? No.

Surveillance pricing is different. Where dynamic pricing responds to market conditions, surveillance pricing responds to the individual. It draws on browsing history, device, postal code, purchase frequency and inferred income to predict a person’s willingness to pay.

Dynamic pricing seems to ask: “What are the conditions right now?” Surveillance pricing asks: “Who are you, and how much can we extract from you?”

How much is happening in Canada?

It’s difficult to know how much surveillance pricing is happening in Canada, if at all. So far, there has been no confirmed Canadian case, and the practice is opaque by design.

The Competition Bureau’s discussion paper, published in 2025, reported that more than 60 companies in Canada offer services that use algorithms to optimize pricing across retail, hospitality, transportation and ticketing.

The bureau’s What We Heard report, published in January after a public consultation on algorithmic pricing, identified transparency as Canadians’ chief concern. Shoppers do not know whether the price in front of them has been personalized to them specifically.

The most prominent real-world example came from south of the border. An investigation by Consumer Reports and Groundwork Collaborative documented Instacart customers in the U.S. being charged up to 23 per cent more than other shoppers for the same items, at the same store, at the same time.

Nearly three-quarters of grocery items tested were offered to shoppers at multiple price points simultaneously.

Instacart disputed the characterization, but halted the program in December 2025 following public backlash. New York Attorney General Letitia James has since demanded that Instacart share information about its price-testing experiments.

Canadian retailers, meanwhile, are assembling the same underlying toolkit: digital shelf labels that allow prices to be changed remotely in seconds, AI-driven pricing engines and the loyalty card data that feeds them.

Where Canadian law runs out

Most Canadians assume that if something feels deceptive at checkout, the law catches it. For some familiar problems, that is true.

Recent amendments to the Competition Act introduced an explicit ban on drip pricing — the practice of advertising a low price and then adding unavoidable fees at checkout.

The Cineplex case is the most prominent recent example of that law in action. The Competition Tribunal levied a record $38.9 million penalty against the cinema chain for concealing online booking fees, a ruling the Federal Court of Appeal upheld in January. Cineplex has since sought leave to appeal to the Supreme Court of Canada.

But surveillance pricing slips past this framework entirely. The price displayed is technically accurate. No fee is buried and no phantom “regular price” is invented. What is hidden is the process.

Deceptive marketing rules assume everyone is offered the same price and someone is misrepresenting it. Surveillance pricing inverts the premise: everyone is offered a different price, and almost no one knows it’s happening.

The Competition Bureau’s mandate is to protect and promote competition, not consumer fairness. Its tools were built to catch anti-competitive behaviour between companies, not price discrimination between individual shoppers.

Similarly, provincial consumer protection laws like Ontario’s Consumer Protection Act are designed to deal with misleading or unfair practices in one-on-one transactions — not large-scale, automated differences in how millions of consumers are treated.

Privacy law, in turn, governs consent to data collection, not consent to how that data is used to shape what you pay. Three legal regimes circle the problem; none quite covers it.

What other jurisdictions have done

In November 2025, New York’s Algorithmic Pricing Disclosure Act took effect, requiring any business that uses personalized pricing to display a notice reading “this price was set by an algorithm using your personal data,” with civil penalties of up to US$1,000 per violation.

The European Union has required disclosure of personalized pricing since its 2019 consumer rights overhaul. Manitoba’s Bill 49, introduced March 17 by the NDP government of Premier Wab Kinew, would go further than either of those measures and prohibit surveillance pricing outright, making it an unfair business practice.

When asked if he would follow suit, Ontario Premier Doug Ford said he would not, telling reporters he believes in a “free market” and a “capitalist society.”

Federal AI Minister Evan Solomon said the federal government is “looking into” the issue, but that it would fall under the purview of the Competition Bureau.

What real protection would require

In the short term, shoppers can use private browsing mode, turn off location services and log out of loyalty apps before they shop.

These, however, are only workarounds. They place the burden of navigating an opaque system on the least-informed party in the transaction and they require a level of digital awareness some shoppers don’t have.

Real protection means either a federal disclosure mandate along New York’s lines, or an outright prohibition like the one Manitoba is pursuing. The Competition Bureau can keep monitoring, but monitoring is not enforcement, and competition law wasn’t designed to police unfairness on its own.

Until Parliament or the provinces close the gap, Canadian consumers have no reliable way of knowing whether the price they see is the price everyone else sees.

About the Author: Jake Okechukwu Effoduh is an Assistant Professor, School of Law, at Toronto Metropolitan University.

More from Retail Insider:

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Retail sales climb to nearly $75 billion in August: Statistics Canada

Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 1.1% in August.

Retail Insider “Q3 2026 Apparel & Fashion Report”: Stores Have to Earn Their Investment

Canadian fashion retailers are expanding, relocating and closing stores within the same market. The Q3 report examines why location productivity and network contribution matter more than headline store counts.

Canadian Franchise Sector Supports Nearly 2 Million Jobs: CFA

Canadian Franchise Association CEO Sherry McNeil discusses franchise ownership, opportunities for entrepreneurs, industry growth and the importance of due diligence.

OpenTable report highlights restaurants’ economic impact on Canadian communities

OpenTable survey finds half of Canadian diners spend an average of $133 at nearby businesses before or after restaurant visits, while no-shows remain a cost for operators.

Tahini’s targets 30 new restaurants as social media drives franchise growth

The Canadian Mediterranean fusion chain has 76 restaurants and plans further expansion in Canada and the U.S., with some franchisees discovering the brand online.

Toronto-Based Panda Hub Raises $4 Million to Expand Mobile Car Care Marketplace

Panda Hub plans to launch its Panda 2.0 platform, enter new markets and add premium automotive services as it prepares for Series A funding.

Canadian Small Businesses Emphasize Local Identity as Holiday Costs Rise: VistaPrint Survey

VistaPrint research finds 51% of Canadian small businesses cite financial pressures as a key holiday challenge, while 32% prioritize attracting new customers.

Daily Synopsis: October 22, 2026

Canada Post starting weekend parcel delivery in Toronto Montreal and Ottawa, Walmart Supercentre opens in Fort McMurray, Stony Plain Costco under construction, adults drive Halloween candy sales, and other news.

Kith Opens Second Canadian Storefront at Vancouver’s Oakridge Park

Kith has opened its second Canadian store at Oakridge Park in Vancouver. The approximately 9,000-square-foot store features men's, women's and children's fashion, footwear, Kith Treats and a distinctive street-facing design within the shopping centre's expanding international retail mix.

NAPA Canada Sales Rise 9% as Acquisitions Drive Expansion Amid Soft Market

NAPA Canada reported 9% sales growth in the third quarter of 2026, supported by its acquisition of Benson Auto Parts. Comparable sales rose just 1%, highlighting subdued demand as parent UAP expands its Canadian automotive distribution and repair network.

MUJI opening first Vancouver Island store as Canadian expansion continues

The Japanese retailer is introducing a community partnership program in Victoria, with plans to extend the initiative to future Canadian store openings.

WitchSchool Canada Tests ‘Reciprocal Retail’ Model in Ottawa’s ByWard Market

WitchSchool Canada is testing a collaborative retail model in a 160-square-foot storefront in Ottawa’s ByWard Market. Founder Kiki Keskinen says the grant-supported residency connects independent entrepreneurs through shared programming, customer referrals and promotional opportunities, while raising questions about long-term operating costs.

Cozey doubles size of Toronto flagship showroom (Photos)

The furniture retailer is expanding its Queen Street West location as it adds products and prepares for new store openings in Edmonton and New York City.

CouchHaus Expands Toronto Presence With New King East Pop-Up Showroom

The Canadian furniture brand is returning to Toronto after its 2024 Stackt Market test, using an in-person showroom to support customer experience and national growth.

Retail Insider “Q3 2026 Grocery Report”: More Capacity, a Harder Fight for the Basket

Canadian grocers are adding stores, converting banners and reworking online fulfilment. The Q3 report examines whether more capacity can capture additional household spending at an acceptable cost.

Two-thirds of small business owners plan to exit within decade, CFIB says

A CFIB report says limited succession planning could put Canadian business assets, jobs and community services at risk as owners prepare to retire or sell.

One in four Canadian small business owners required to guarantee financing personally: Equifax

Equifax Canada survey finds younger entrepreneurs are more likely to use personal credit and assets to support their businesses as owners face customer, cost and cash-flow pressures.

HEINZ enters Canada’s ready-to-eat soup market with six new products

Kraft Heinz Canada is introducing six soup varieties in portable bags, targeting consumers seeking convenient meal options beyond traditional canned soup.

Canadian small businesses expand teams as employee turnover declines: Wagepoint

Wagepoint’s 2026 report finds median hourly pay rose 27% from 2019 to 2025, while part-time roles declined and Gen Z’s share of small-business workers more than doubled.

Pinterest teams up with Mattel for Barbie experience

The experience lets Pinterest users bring Barbie DreamHouse inspiration into their homes through five signature style edits, offering a new example of how brands can use personalized, visual experiences to move people from inspiration to action.