Algorithmic pricing is being used in Canada. Why many want it banned

Most Canadians want the government to ban or regulate the use of algorithms to set prices, a new poll suggests — with half of respondents saying the practice is unfair.

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.