Mayor Chow Moves to Ban 'Surveillance Pricing' at Grocery Stores

Toronto Mayor Olivia Chow is bringing forward a motion to bar so-called "surveillance pricing" on groceries and other essentials, a tactic where businesses set individualized prices using shoppers' personal data.

Speaking before a Tuesday executive committee meeting, Mayor Chow stated that the practice threatens to gouge residents already struggling with the cost of living, asserting that "no one should have a different price based on who you are." The motion, seconded by Coun. Alejandra Bravo, directs city staff to investigate all possible methods to regulate and ban the practice for both in-store and online deliveries. Coun. Bravo described the use of data to maximize corporate profit as "predatory pricing."

Loblaw Companies pushed back against the premise. Youmna Rab, a spokesperson for Loblaw Companies, told CBC Toronto that surveillance pricing "does not exist in grocery," arguing that using such tactics would immediately erode customer trust. Rab stated that Loblaw will not use this pricing model on e-commerce sites or shelf labels.

The move comes amid conflicting stances from other levels of government. While Manitoba is currently reviewing "personalized algorithmic pricing" as an unfair business practice, Ontario Premier Doug Ford has opposed a ban. According to CityNews Toronto, Ford stated in April that he believes competition in a free-market, capitalist society is the most effective way to keep costs low, though he noted he would target companies if pricing collusion occurred.

Other efforts to curb the practice have faced hurdles; both the federal NDP and the Ontario NDP saw motions to ban surveillance pricing voted down in April and this spring, respectively. However, CBC Toronto reports that a draft federal AI strategy indicated Canada intends to strengthen privacy laws to ensure personal information is not used inappropriately, including for surveillance pricing.