Toronto City Council unanimously approved a motion to explore a ban on surveillance pricing of groceries, a practice that uses personal data to adjust prices for individual shoppers.
The proposal, driven by the mayor, calls for the city to identify all possible mechanisms to prohibit and regulate algorithmic price discrimination in grocery sales.
Councilors debated the legal reach of the initiative, with some asserting that municipal bylaws can address emerging consumer‑protective issues, while others warned that online pricing falls outside the city’s jurisdiction.
A veteran councillor emphasized the need to act proactively, describing the issue as a “freight train” that must be stopped before it gains momentum.
Legal scholars noted that the city can impose rules on its own facilities, require disclosure from licensed vendors, and select preferred suppliers, but cannot enforce a citywide ban on private online retailers.
Because surveillance pricing occurs on digital platforms, municipal authority to regulate every grocery provider is limited, according to experts.
The council acknowledged the uncertainty surrounding the prevalence of the practice in Canada, noting that while no concrete evidence of widespread deployment exists, the underlying technology is available and used in other markets.
Recent attempts to introduce similar bans at the federal and provincial levels were rejected, underscoring the challenge of securing broader legislative support.
Other jurisdictions, such as a western province, have drafted rules targeting surveillance pricing, yet no Canadian city has yet enacted comparable regulations.
The city’s own plans to operate municipal grocery stores introduce a potential conflict of interest, prompting further scrutiny of its regulatory stance.
Even if legislative power is limited, council members hope the motion will raise public awareness and deter retailers from deploying price‑adjusting algorithms.
Consumers concerned about personalized pricing can strengthen privacy settings, use multiple devices, log out of accounts when shopping, or revert to in‑store purchases to minimize algorithmic influence.
