Mayor Chow Moves to Ban 'Surveillance Pricing' in Toronto
AI-generated image · Bay Street Wire
City hall is weighing a crackdown on the use of consumer data to set individual prices for groceries and essentials.
Toronto Mayor Olivia Chow is introducing a motion to investigate ways the city can ban and regulate "surveillance pricing," a practice where businesses utilize personal consumer data to determine the maximum price an individual customer is willing to pay.
According to reporting from CBC Toronto, Chow's motion specifically targets the pricing of groceries, including items sold online and delivered within the city. Speaking at a news conference, Chow stated that the practice allows corporate giants to maximize profits on the backs of regular people who are already struggling with the cost of living, asserting that "no one should have a different price based on who you are."
Coun. Alejandra Bravo, who seconded the motion, characterized the use of consumer data to maximize profit as "predatory pricing." Chow has directed city staff to explore all possible avenues for a ban and report their findings next year.
The move comes amid conflicting views across different levels of government. CBC Toronto reports that Ontario Premier Doug Ford has expressed opposition to banning algorithmic personalized pricing, citing his belief in a free-market, capitalist society where competition keeps costs low. An Ontario NDP motion to ban the practice was rejected in April, shortly after Ford voiced his opposition.
On a broader scale, Manitoba is currently considering whether to classify "personalized algorithmic pricing" as an unfair business practice. Additionally, while a federal NDP motion to ban the practice in retail and online stores was unsuccessful this spring, CBC Toronto notes that an initial draft of the federal AI strategy suggests Canada will work to strengthen privacy laws to ensure personal data is not misused, including for surveillance pricing.