The NDP has introduced a motion calling on the federal government to ban so-called surveillance – or algorithmic pricing.
The pricing method uses algorithms to set or recommend prices for products and services, in real time.
According to the Competition Bureau, as of last year, more than 60 companies in Canada were already using algorithms to help businesses optimize pricing.
Two examples of personalized pricing as provided by the Competition Bureau of Canada
The problem according to NDP Leader Avi Lewis, is that the method is “opaque” by design and could result in different customers paying different prices for the same item depending on their personal data, and demand.
Some U.S. states have already drafted bills to regulate the practice, while in the U.K. companies can be fined up to 10 per cent of global revenue for hidden or biased digital pricing.
Federal NDP Leader Avi Lewis (CPAC)
Lewis says digital pricing is unfair to consumers.
“In the United States, there are disturbing examples already documented. The (U.S.) Federal Trade Commission recently found retailers frequently use a wide range of personal data to set prices. The examples” says Lewis, “are downright dystopian.”
“If you’re a new parent, and your baby is sick, a corporation could charge you a higher price for a thermometer or medicine, based on your search history. If a loved one dies and you need to travel on short notice, you could be charged more for a plane ticket, if you got an email about funeral arrangements.”
