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The federal NDP says it will introduce a motion Wednesday in the House of Commons seeking unanimous consent to urge a ban on algorithmic pricing.
A party spokesperson told Global News that the NDP’s parliamentary leader, Don Davies, will make the move after question period. NDP Leader Avi Lewis does not have a seat in the House of Commons and cannot put forward such a measure himself.
Lewis promised a motion would be introduced this week during a press conference Monday where he urged the federal government to ban algorithmic pricing, also known as surveillance or dynamic pricing.
The practice involves companies using artificial intelligence and data to set different prices for consumers depending on whatever attributes they set up.
This could be based on anything from the income levels and demographic details of the prospective customer to the demand for the good or service.
“Big Tech is teaming up with retailers, including grocery giants, to spy on Canadians and gouge them even more,” Lewis said on Monday.
“This is unfair. It’s a ripoff. And it’s downright creepy. The federal government must use all tools at its disposal to stop the practice dead in its tracks.”
Unanimous consent motions are non-binding but can help put a spotlight on a topic or put pressure on the government to bring forward legislation that addresses issues raised by individual MPs or parties.
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Just one MP objecting would defeat such a motion.
AI Minister Evan Solomon told reporters Wednesday that the Liberals are “looking into” algorithmic pricing to ensure there’s “transparency for Canadians.”
Yet he said the Competition Bureau, not his department, would be taking the lead on any kind of regulation and would not say what action the government might take.
“That’s not my department, so I’m not going to answer for my administrators,” he said while heading into the Liberal caucus meeting in Ottawa.
“We do want to make sure that there’s fair pricing. This is why we’re supporting transparency. We also support making sure that Canadians get the right price, so they’re not paying undue prices that are unfair, so we’re going to look at that.”
Last year, the Competition Bureau investigated the possible use of artificial intelligence-driven algorithmic pricing in Canadian real estate rental markets.
In November, it said that while it hasn’t found evidence that using computer software to recommend rent prices reaches the level of anti-competitive behaviour, it remains concerned about possible issues.
A January report on the Competition Bureau’s public consultation on algorithmic pricing found individuals who provided feedback mostly raised concerns about the practice. The most common words used in those responses included unfairness, discrimination, predatory pricing and profiteering.
Businesses and other stakeholders who responded noted that dynamic pricing created “market efficiencies,” but also raised concerns about potential anti-competitive behaviour and a lack of transparency around the data being used.
Most Canadians want the government to ban or regulate algorithmic pricing, recent polling suggests — with half of respondents saying the practice is unfair because it can result in people paying different prices for the same product.
Around half (52 per cent) of those polled by Abacus Data said the practice should be banned and 31 per cent said it should be allowed but more strictly regulated.
— with files from Global’s Uday Rana
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