What to know
- Marit Stiles’ motion to curb surveillance pricing was voted down by MPPs, with Doug Ford declining to support the non-binding proposal.
- Surveillance pricing uses personal data and AI tools to tailor prices to individual consumers, with concerns it could expand into grocery stores through electronic shelf labels.
- The proposal followed reports, including a Consumer Reports investigation, linking similar pricing practices to platforms like Instacart.
- Torontonians interviewed expressed frustration and concern, with many supporting government intervention and calling the decision to reject the motion “unfair” and “foolish,” especially amid high living costs.
NDP Leader Marit Stiles’ motion to ban surveillance pricing in Ontario was just voted down by provincial leaders, and some Torontonians say it was not the right decision.
Surveillance pricing is when companies use internet users’ personal data to customize prices for each person based on the maximum price they are expected to be willing to pay.
According to the NDP Leader, grocery chains are now looking to adopt AI-powered tools facilitated by tech companies to include electronic shelf labels that would also enable the practice even in physical stores, bringing prices up for some consumers.
The claim comes after an investigation by Consumer Reports found that grocery chains in the U.S. were using AI-powered surveillance pricing tools through apps like Instacart.
Last week, Stiles tabled a non-binding motion urging Premier Doug Ford’s government to take action to prevent the practice, which she described as “predatory.”
However, on Monday, the NDP announced the motion was voted down by MPPs, while Stiles criticized the Ford government for not pushing the proposal forward despite thousands of people showing support for it.
“Fifty-eight Conservative MPPs voted no, 21 didn’t even show up, including Doug Ford. So, I guess he shows up to buy a $30-million luxury jet, but protecting you from price gouging? Sorry, calendar’s full,” she said in a video posted on social media.
“There were more than 75,000 emails sent. Thousands of you called, posted, organized, and the government said ‘no’ anyway.”
The NDP Leader said that although the proposal didn’t pass, the NDP will continue to push for it, and will even support any similar bills put forward by the Conservatives.
“I’m not going to stop fighting for this. We’re going to bring it forward in the legislature, and if the government decides to introduce their own bill banning predatory surveillance pricing…all good. I don’t care who gets the credit, I care that it gets done. It’s just the first step.
A similar ban is currently being moved by the Manitoba government to stop surveillance pricing.
Despite Stiles saying there is widespread support for the proposal, Ford told reporters last week that he would consider banning surveillance pricing in Ontario.
According to him, the “best way” to achieve better prices for consumers is to foster market competition.
“I believe in a capitalist society, free market, the market dictates. If ‘abc’ grocery store wants to compete against the other one, that’s what the true driver is. Free and fair competition. And let the market dictate prices,” he said to reporters last week.
“That’s a capitalist society, a market. The other one is socialism. Socialism does not work. You go around dictating and overseeing what price…No, if there is collusion on pricing, I’ll go after them and tear them to shreds. But nothing beats free market.”
Torontonians react
Now Toronto took to the streets to hear residents’ thoughts on banning surveillance pricing.
While all Torontonians we spoke with said they didn’t originally know what surveillance pricing was, some said they believe they might have experienced it at some point while shopping online.
One resident, Kevin C., said that he has seen prices change depending on when and where he was looking into products, but said he typically tries to avoid falling for the practice.
“I think everyone goes through that a lot recently. I think it’s stupid. But if people are willing to pay it, if they get tricked and pay it. Who am I to argue? I usually just don’t pay it,” he said.
However, he still believes the government should take action to prevent companies from changing prices based on consumers’ behaviours, and said the MPPs decision to stop the proposal was “foolish.”
“I think it’s unfair. The government should try to stop that in some ways, especially because of the economy we’re in right now…But that has to affect the companies, because if they do that, I think less people are paying for it, unless it’s something that’s if they [can’t avoid], like medication or groceries,” he added.
Another Torontonian, Diego H. said he believes he has experienced that when trying to buy plane tickets, and said he would also support the government in banning the practice.
“[The government] tries to keep pushing us down. [It’s] just unfair, I think, to us, to the normal people, to try to buy stuff and try to have a living here in Toronto, which is not cheap at all. So, totally against that…Now that I know [what surveillance pricing is] I will be totally supporting this proposal,” he said.
Another resident, Carolina R. was shocked to learn that companies might be doing that, and said she’d also support the government taking action.
“I didn’t sign up for that. That’s crazy,” she said. “Why would that even be allowed? That’s so weird. Wow, that’s really conniving, because we all work really hard for our funds, so the fact that the province just wants to [allow stores to] take a bit more of that is quite crazy.”
