AI Regulation

Ontario Refuses to Ban Personalized Algorithmic Pricing in Groceries

Ontario Premier Doug Ford has stated that his government will not ban surveillance pricing—also known as personalized or algorithmic pricing—on grocery items, emphasizing his commitment to a free-market approach. When questioned about following Manitoba’s lead in prohibiting the practice, Ford said he trusts competition rather than regulation to control prices, although he warned against illegal collusion.

Surveillance pricing uses consumer data such as purchase history, location, and shopping habits to offer individualized prices, differing from traditional sales or even dynamic pricing models. For example, two shoppers standing side by side can see different prices on the same item, with the algorithm tailoring charges based on perceived willingness to pay. This method operates with significant opacity, as consumers cannot compare prices or know if they are being charged more than others.

The Competition Bureau of Canada reported last year that over 60 companies use pricing algorithms in sectors beyond travel and ride-hailing—including grocery retail, rental housing, and financial services. These industries involve intimate consumer data and essential goods, raising concerns over fairness and transparency.

Opponents argue surveillance pricing exploits vulnerable groups such as low-income consumers, those in food deserts, and shoppers with predictable needs, who may lack alternatives and thus face higher prices. Avi Lewis, federal NDP Leader, characterized the practice as a system designed to “spy on Canadians and gouge them.” The United Food and Commercial Workers (UFCW) union also criticized these systems for prioritizing profit over fairness.

A recent poll by Abacus Data found that 52 percent of Canadians want surveillance pricing banned outright, while another 31 percent support stricter regulation.

Political Responses and Legislative Action

Manitoba Premier Wab Kinew’s government introduced legislation to ban the practice preemptively after a U.S. investigation revealed grocery delivery platform Instacart was charging different prices for the same items depending on customer data, with variations up to 23 percent. The move aimed to prevent the normalization of surveillance pricing before it became widespread locally.

In Ontario, the opposition parties have called for similar protections. Ontario NDP Leader Marit Stiles introduced a non-binding motion urging a ban, which was defeated along party lines by the governing Conservatives. Premier Ford did not attend the vote. Subsequently, Ontario Liberal interim leader John Fraser proposed a private member’s bill targeting the same issue.

Why it matters

Surveillance pricing challenges traditional market assumptions by undermining consumer ability to compare prices and promotes pricing discrimination based on personal data. Without regulation, the practice can exacerbate inequality by charging higher prices to consumers with fewer alternatives or less mobility. Ontario’s refusal to regulate this growing practice signals to the retail and financial sectors that algorithmic price discrimination may proceed unchecked in Canada’s largest consumer market.

Sources

This article is based on reporting and publicly available information from the following source:

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Giorgio Kajaia
About the author

Giorgio Kajaia

Giorgio Kajaia is a writer at Goka World News covering world news, U.S. news, politics, business, climate, science, technology, health, security, and public-interest stories. He focuses on clear, factual, and reader-first reporting based on credible reporting, official statements, publicly available information, and relevant source material.

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