The Canadian province of Manitoba has introduced a bill to ban algorithmic price discrimination (also known as surveillance pricing), i.e., the use of personal data to set prices for individual consumers:
New Democrats announced in December they would begin cracking down on what’s known as differential or predatory pricing. That is when retailers charge different amounts for the same products based on the timing of customer purchases, where they live or other personal data. […] The proposed legislation would render the use of “personalized algorithmic pricing,” both online or in store, an unfair business practice.
Okay, I guess there’s a lot of different names for this particular practice. Whatever we call it, I believe bills cracking down on algorithmic price discrimination will be very popular, as it constitutes a very clear example of companies using our data against us to rip us off. The most famous recent exposé of this practice is Groundwork Collaborative’s report on how grocery delivery service Instacart charges users different prices depending on who they are.
Manitoba isn’t the only jurisdiction introducing bills targeting this practice, but I don’t believe anywhere in the US or Canada has actually managed to ban it yet. However, New York has made in mandatory for companies to disclose when they use personal data to set prices.
Expect to see more legislation banning algorithmic price discrimination to be passed in the near future, and expect more lawsuits from companies who feel like their path to profitability through efficient price discovery is being unfairly cut off.