Competition Bureau hears of affordability, privacy concerns over algorithmic pricing

The government's Competition Bureau website is pictures on a mobile phone and laptop screen in Ottawa on Monday, Oct. 2, 2023. THE CANADIAN PRESS/Sean Kilpatrick

GATINEAU — The Competition Bureau says it heard a variety of concerns from Canadians during its recent study into the use of algorithms to set prices, including issues around unfairness and affordability.

The bureau launched a consultation on the topic last year, seeking public input as it noted more than 60 companies in Canada were already using automated systems to help set prices, often in real time, for everything from concert tickets to ride-hailing to hotel rooms.

It detailed that feedback in a report released Thursday, summarizing key themes from more than 100 submissions. The bureau said it heard from both domestic and international respondents, including individuals, businesses, industry associations, members of the academic and legal communities and consumer interest groups.

Some who took part in the study expressed worries related to potential discrimination, a lack of transparency, the effect on the affordability of daily essentials, along with privacy and ethical concerns associated with consumer data collection.

“There’s absolutely no explanation for these price changes. It’s a ‘black box,’” said one respondent quoted in the report.

“I have no idea why the price is what it is, and it makes it impossible to trust that I’m getting a fair deal. This lack of clarity is very frustrating.”

Another participant expressed unease with the ability of companies to “leverage vast amounts of personal data” through algorithmic pricing, likening it to “surveillance pricing.”

“This fundamentally undermines the principle of equal access to the marketplace and disproportionately harms our most vulnerable citizens,” they said.

Some respondents advocated for the government to regulate algorithmic pricing to ensure fairness and transparency, while others called for it to be banned outright.

But other feedback touted benefits of the practice. Respondents said it could bolster competition and innovation by allowing firms to respond faster to market changes, price more efficiently and adjust prices in real time.

That could help small- and medium-sized businesses, especially new entrants, compete with larger corporations by responding more quickly to competitor prices, while cutting costs through automation.

Acting commissioner of competition Jeanne Pratt said the study shows algorithmic pricing “can improve efficiency and choice, but it also presents risks related to fairness, transparency, and competition.”

“We will continue to engage with partners, the international community, market participants and Canadians as we advance our understanding of these emerging competition issues,” Pratt said in a statement.

The bureau has previously said algorithmic pricing could become an issue under the Competition Act if multiple companies rely on the same model to set pricing, creating a form of collusion on pricing even without explicit collaboration.

It also said the systems could also be used for predatory pricing if a company uses them to target specific customers of rivals, rather than lowering prices overall.

This report by The Canadian Press was first published Jan. 22, 2026.

The Canadian Press