City officials have introduced a motion to prohibit grocery retailers from adjusting prices in real time while customers shop online.
The proposal targets what has been called “surveillance pricing,” where algorithms analyze shoppers’ personal data—such as demographics, browsing behavior, and purchase history—to determine the highest price a consumer is willing to pay for an item.
These algorithms also factor in market conditions, including supply, demand, competitor pricing, and inventory levels, enabling retailers to set or recommend prices instantaneously.
Mayor Olivia Chow, who introduced the motion, was joined by Councillor Alejandra Bravo, who seconded it. The pair will bring the proposal before the city’s executive committee next Tuesday.
Dynamic pricing models have been adopted in other industries, including ridesharing, where they have been linked to increased consumer costs. The city’s motion seeks to prevent similar practices from eroding fair competition in the grocery sector.
Chow emphasized that such pricing practices can amount to price gouging, as prices vary based on who is shopping, when they shop, and other personal attributes. She called for comprehensive measures to ban this practice and protect consumers from hidden, data‑driven price hikes.
