An Abacus Data survey found that barely one-in-10 Canadians has heard of the practice of algorithmic pricing, but once they learn what it is, almost 60 per cent suspect they have experienced it in their own shopping pursuits.

And they are not fond of it.

“When respondents are provided with a definition of algorithmic pricing: describing systems where prices change dynamically based on demand, browsing behaviour, customer profiles or other data, reactions turn sharply negative,” wrote David Coletto, founder and chief executive officer of Abacus Data.

So what exactly is algorithmic pricing?

“Algorithmic pricing allows companies to adjust prices automatically based on factors such as demand, time of day, inventory levels, browsing behaviour, competitor pricing, or other signals,” according to Coletto.

In a March poll of 1,931 Canadians, only 13 per cent already knew about the practice. But while many didn’t fully comprehend its implementation, 58 per cent of respondents said pricing fluctuations happen often or sometimes, according to the survey.

When searching prices online, half of respondents said they have seen prices change for travel, such as hotels or flights, as well as with ride-sharing and retail businesses.

Dynamic pricing ‘potentially exploitive’

When the pollster explained the concept and that prices can vary, a majority (52 per cent) felt the practice is unfair to consumers, the survey notes.

“Dynamic pricing has existed for years in sectors like travel and hospitality. What appears to trouble people is the idea that prices might be tailored to individual consumers in ways that are invisible, difficult to understand, and potentially exploitative,” Coletto added.

Many survey respondents felt governments should step in: 52 per cent said it should not be legal and another 31 per cent called for more strict regulations.

While this type of pricing practice can be a powerful tool for businesses it also presents a “meaningful reputational risk,” according to Coletto.

Governments paying attention

One provincial government has promised to end the practice. The Manitoba government introduced an amendment to its Business Practices Act on March 17.

“Protecting Manitobans from unfair pricing practices is essential to keeping life affordable. These are first-of-their-kind amendments and take aim at the misuse of personal data to inflate prices and ensure consumers are treated fairly whether they shop at the grocery store or other retailers,” said Mintu Sandhu, public service delivery minister in a press release.

Bill 49 would ban the practice, both online or at brick-and-mortar locations, when retailers switch pricing “based on personalized or algorithmically determined information,” according to the release.

Other government departments are also paying attention to this issue. In late January, the Competition Bureau released a report about the practice after hearing from 77 individuals who responded to a request for submissions.

According to the report, the words "unfairness" and "discrimination" were the two most popular terms used to describe algorithmic pricing.

South of the border, many U.S. jurisdictions are also looking to ban the practice.

“State legislatures have responded with a dramatic surge in activity: 24 states introduced 51 bills curbing algorithmic pricing practices in early 2025, compared to just 10 bills across all states in 2024. New York became the first state to enact legislation specifically targeting algorithmic price-fixing in rental housing,” writes Max Morgan, a master’s in public policy candidate and tech and public policy scholar at Georgetown University in Washington, D.C., in Tech Policy Press.