NDP Leader Avi Lewis Urges Federal Ban on ‘Creepy’ Algorithmic Pricing

New Democratic Party leader Avi Lewis is calling on the federal government to outlaw algorithm-driven pricing practices, warning that the growing use of artificial intelligence in retail is unfairly targeting consumers.

Speaking on Monday, Lewis sharply criticized what he described as “surveillance pricing,” a system where companies use personal data and algorithms to set individualized prices. He argued that such practices allow corporations to charge customers differently based on factors like income, demographics, or purchasing behavior.

“Big Tech is teaming up with retailers, including grocery giants, to spy on Canadians and gouge them even more,” Lewis said, adding that the practice is “downright creepy” and must be stopped immediately.

The NDP plans to introduce a motion in Parliament aimed at banning the use of algorithmic pricing altogether. The move comes amid rising concerns that artificial intelligence is being used not just to improve efficiency, but to maximize profits at the expense of fairness.

Algorithmic pricing often referred to as dynamic pricing is not new, but its expansion into everyday retail, including groceries, has triggered widespread debate. The technology allows businesses to adjust prices in real time, potentially offering different rates to different customers for the same product.

Support for regulatory action appears to be growing. A recent poll conducted by Abacus Data found that a majority of Canadians are uneasy about the practice. Of the 1,931 respondents surveyed, 52 per cent said algorithmic pricing should be banned outright, while another 31 per cent supported stricter regulation.

Labour groups have also joined the call for action. United Food and Commercial Workers Canada President Barry Sawyer warned that such pricing systems are inherently exploitative.

“These systems are designed to maximize profit, not fairness,” Sawyer said. “We cannot accept predatory pricing practices that squeeze more out of people at the checkout.”

Government bodies have already begun examining the issue. The Competition Bureau previously investigated the use of AI-driven pricing tools in rental housing markets. While it did not find evidence of illegal anti-competitive behavior, it acknowledged ongoing concerns about the broader implications.

Some provinces are taking independent steps. Manitoba’s NDP government recently announced plans to prohibit retailers from using personal data to raise prices for individual customers, both in-store and online.

The controversy has also surfaced in the private sector. In 2024, fast-food chain Wendy’s faced backlash after attempting to introduce dynamic pricing. More recently, grocery delivery platform Instacart scrapped a program that showed different prices to users shopping at the same store simultaneously.

A joint report by Consumer Reports and advocacy groups Groundwork Collaborative and More Perfect Union highlighted the scale of the issue. Their research found that nearly three-quarters of grocery items on Instacart were offered at varying prices during testing, with potential annual cost differences of up to $1,200 for the average American household.

As pressure mounts from political leaders, unions, and consumers alike, the debate over algorithmic pricing is quickly becoming a central issue in discussions about digital fairness and consumer protection in Canada.