Parliament voted down a motion on April 15 to ban a practice most Canadians have never heard of, but that retailers are already rolling out: surveillance pricing.

Also called algorithmic personalized pricing, the practice uses personal data to estimate how much consumers are willing to pay, then adjusts the price accordingly. Two shoppers, same store, same item: two different prices, generated by data neither of them can see.

The NDP motion urges the government to prohibit surveillance pricing both in stores and online. The Liberals and Conservatives voted it down. NDP leader Avi Lewis had called the practice “unfair” and “downright creepy” at a news conference days earlier.

A poll by Abacus Data conducted in March found that while most Canadians are not familiar with the term, when the practice was explained to them, 52 per cent said it should be banned. Another 31 per cent of the Canadians surveyed said it should be allowed but more strictly regulated.

For Canadians struggling with cost-of-living pressure, the practice is spreading among retailers, and the laws meant to protect consumers were not designed to catch it.

Not the same as surge pricing

A useful distinction first. Dynamic pricing, the kind used by airlines, hotels and rideshare companies, adjusts based on conditions like demand, the time of day or weather, and applies the same algorithm to every customer equally.

Uber’s surge pricing is the textbook example of dynamic pricing: every rider in the same area at the same moment sees the same multiplier. Annoying? Perhaps. Personalized? No.

Surveillance pricing is different. Where dynamic pricing responds to market conditions, surveillance pricing responds to the individual. It draws on browsing history, device, postal code, purchase frequency and inferred income to........

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