Most Canadians want the government to ban or regulate algorithmic pricing, a new poll suggests — with half of respondents saying the practice is unfair because it can result in people paying different prices for the same product.
The Abacus Data poll, which was conducted online and can’t be assigned a margin of error, polled 1,931 Canadians on algorithmic pricing.
Around half (52 per cent) of those polled by Abacus said the practice should be banned and 31 per cent said it should be allowed but more strictly regulated.
David Coletto, CEO of Abacus Data, said that while most people aren’t necessarily familiar with the term, most have felt the effects of algorithmic pricing.
“I would say most Canadians feel they have experienced this in some way,” he said.
“The reason why there is so much sensitivity around it is … basic fairness. It goes to a core principle that … for the same product or the same service, the price should be the same for everybody.”
On Tuesday, the Manitoba government said it would prohibit retailers from using personal data to increase prices for specific consumers. The rule would apply both in person and online.
“Algorithmic pricing, otherwise known as dynamic pricing, is when companies use AI and data to set different prices for consumers, depending on whatever attributes they set up,” retail analyst Bruce Winder said.
This could be based on anything from the income levels and demographic details of the prospective customer to the demand for the good or service.
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“There’s a bit of a black box in terms of what are they looking at in that algorithm. Is it my income? Is it where I live? My postal code? Is it my race or ethnicity?” Winder said.
Currently, there are no explicit regulations against dynamic pricing, but consumers can report unfair or discriminatory practices to the Competition Bureau, said University of Guelph food economist Mike von Massow.
“If people complain, then they will investigate,” von Massow said.
Charging people more on the basis of demographic differences might be seen as prejudice, he added.
Last year, the Competition Bureau also investigated the possible use of artificial intelligence-driven algorithmic pricing in Canadian real estate rental markets.
In November, it said that while it hasn’t found evidence that using computer software to recommend rent prices reaches the level of anti-competitive behaviour, it remains concerned about possible issues.
Some who took part in the Abacus poll expressed worries about the potential for discrimination, a lack of transparency, the effect on the affordability of daily essentials, and privacy and ethical concerns associated with consumer data collection.
While changing prices depending on demand or time of day is not new in retail, using AI or technology is, von Massow said, adding that some grocery stores are attempting to use algorithms to set prices for loyalty card holders.
“If you are a loyalty card member, on your app, on your phone, you will get offers for deals on specific things. That is algorithmic pricing. They’re looking at what you’ve bought before, they’re looking at where you are geographically and they’re offering you something that they think you might want,” von Massow said.
Many Canadians have already experienced one form of dynamic or algorithmic pricing – when they book a ride on an app like Uber, Winder said.
“If you book an Uber, and there’s not many drivers on the road during a snowstorm, your rates are going to go way up. But if you book an Uber on a nice sunny day, the weather’s great, there’s lots of drivers on the road, your rate will be a little less,” he said.
“We have something similar to this across airlines, hotels and ride sharing. And it’s not about someone’s demographics, or wealth, or income. It’s about time of day and capacity.”
For example, an airline or hotel may automatically raise prices during peak travel season.
While customers have come to expect wild price swings for ride-sharing services and travel, Winder said brands will have a harder time selling it for more basic items, such as groceries or toilet paper.
“Brands can’t have that wide a swing for basic items that we use every day or else their consumers are going to resent them for that,” he said.
“I remember during the pandemic, one store increased the price of hand sanitizer to an incredibly high amount, and consumers just brutalized them on social media. You can’t be seen as a brand or retailer of taking advantage of your customers; that never works in retail.”
Algorithmic pricing has caused a stir in food retail as well, with fast-food chain Wendy’s facing backlash from some consumers in 2024 when it tried to introduce dynamic pricing.
In December 2025, online grocery platform Instacart said it was ending a program where some customers saw different prices for the same product ordered at the same time from the same store when using the delivery company’s service.
A report from Consumer Reports and two progressive advocacy groups, Groundwork Collaborative and More Perfect Union, said Instacart offered nearly three out of every four grocery items to shoppers at multiple prices in an experiment.
For the report, researchers conducted an independent experiment involving 437 shoppers in live tests across four cities in the U.S. It found that dynamic pricing would mean price swings of around US$1,200 on groceries for the average American family.
“When prices are no longer transparent, shoppers can’t comparison-shop. When prices are no longer predictable, shoppers can’t properly budget,” the report said.
— with files from The Canadian Press and The Associated Press
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