Half of consumers want ban on computer-driven price changes
Most Canadians distrust algorithmic pricing and want it banned or tightly regulated, even though few recognize the term itself, according to new research that highlights growing consumer anxiety about data-driven commerce.
Abacus Data surveyed 1,931 Canadians online between March 4 and 11. It found that only 13% of Canadians heard of algorithmic pricing before being asked. Yet half said they believed prices were already being set this way, often or sometimes.
The disconnect between awareness and experience points to a deeper frustration with pricing opacity.
"Canadians appear instinctively uncomfortable with systems that personalize prices in ways they cannot see or understand," Abacus Data said in its report.
"Even before they know the technical term, many already suspect these systems exist."
Once explained, reaction turned sharply negative. Fifty-two percent said algorithmic pricing should be banned outright, while 31% supported strict regulation. Just 13% favored allowing the practice with minimal oversight.
Algorithmic pricing adjusts costs in real time based on factors like demand, browsing history, customer profiles, or competitor rates. While common in travel and hospitality for years, the practice has expanded into retail, rental housing, and other sectors.
Bureau investigation finds limited use in rental market
The Competition Bureau investigated algorithmic pricing in Canadian rental housing last year, focusing on revenue management software from RealPage Canada Inc. and Yardi Canada Ltd. The software uses pricing algorithms that analyze supply and demand data to recommend rental prices for available units.
The Bureau's civil investigation assessed whether the companies abused a dominant position or entered into anticompetitive collaboration by collecting and comingling non-public, competitively sensitive information from landlords to generate price recommendations.
In November, the Bureau discontinued its probe, concluding the products were not widespread enough in Canada to substantially harm competition.
The investigation found that while use of revenue management software gradually increased following introduction, landlords across Canada significantly reduced use of these products since late 2024.
"Based on the Bureau's analysis, adoption of this software did not reach the anticompetitive thresholds," the Bureau said in its position statement.
Despite closing the investigation, the Bureau said it "remains concerned about the use of algorithmic pricing tools in the Canadian rental housing market and their potential to harm competition."
The Bureau issued guidance warning landlords that certain features of algorithmic pricing software may distort competition, particularly when software uses non-public competitor data to calculate prices or makes it difficult to reject price recommendations.
"When landlords provide such information to a common software and the software's pricing algorithm relies on competitor data to generate pricing recommendations, this raises concerns of potential harm to competition," the Bureau said.
Fairness concerns dominate
Most Canadians viewed the practice as unfair because it can result in different people paying different prices for the same product or service. Seven in ten said it mostly benefits businesses, not consumers.
"The reason why there is so much sensitivity around it is basic fairness," Abacus Data CEO David Coletto said.
"For the same product or the same service, the price should be the same for everybody."
Broader market implications
Half of Canadians said they noticed prices change online for flights, hotels, ride-sharing, or retail in ways that suggested automated adjustment.
Dynamic pricing has faced backlash when applied to everyday goods. Wendy's abandoned plans to introduce it in 2024 after consumer criticism. Instacart ended a program in December 2025 where customers saw different prices for identical items from the same store at the same time.
A US study by Consumer Reports and advocacy groups found Instacart's dynamic pricing would mean roughly $1,200 in annual price swings for the average American family on groceries.
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