The public believes that algorithmic pricing could spur anticompetitive behaviour, according to the Competition Bureau’s latest “What We Heard” report.
Respondents said that the algorithmic pricing practice was at risk of misuse and needed proper regulation. They described the practice as unfair, discriminatory, exploitative of vulnerable consumers, and predatory.
Respondents claimed that algorithmic pricing treated consumer groups differently based on factors like individual characteristics, socioeconomic status, and purchasing behavior. They also pointed out that consumers struggled to understand and challenge the process of setting prices.
Respondents also expressed concern that using pricing algorithms in the sale of essential goods and services – such as in the groceries, transportation, and housing sectors – could prey on vulnerable consumers or those in high-demand situations. Moreover, respondents raised issues with algorithms obtaining and using consumer information; such data risked being leaked to data brokers. They questioned how such algorithms could secure consent digitally.
Respondents highlighted that algorithmic pricing systems could be designed with anticompetitive strategies in mind. They could also foster collusion, price parity, and deceptive marketing by providing inconsistent information to consumers.
While some called for the elimination of algorithmic pricing, others urged the government to set regulations ensuring fairness and transparency in pricing practices. They pointed to global examples like the approach to property management and hotel booking cases in the US and the European Court of Justice's Eturas case.
Respondents suggested the regulatory efforts concentrate on governance principles like transparency, accountability, and oversight to limit restrictions on innovation. They advocated for data portability and interoperability to cut down lock-in effects and spur competition.
Algorithmic pricing pros
Respondents mentioned greater efficiency, inventory, and supply and demand harmony as benefits of algorithmic pricing.
Stakeholders noted that algorithmic pricing follows dynamic market conditions, enabling businesses to react quickly to revenue opportunities. The practice also facilitates market entry by facilitating a quick response to trends and prices. Personalized pricing could also improve the affordability of goods and services by letting business offer targeted discounts.
The report summarizes findings from the bureau’s public consultation on algorithmic pricing and competition, which stemmed from the publication of a discussion paper in June 2025. Feedback was obtained from 103 respondents comprising members of the general public and businesses, industry associations, members of the academic and legal communities, and consumer interest groups.