Canada wants people to weigh in on practice of 'algorithmic pricing'

The Competition Bureau is seeking feedback from Canadians when it comes to algorithmic pricing.

The agency has published a new paper, Algorithmic Pricing and Competition, from which it seeks public consultation. As the bureau notes, various sectors, including hospitality, concerts and ridesharing, are turning to algorithms to help set prices for products and services.

The paper defines algorithmic pricing as "using automated algorithms to set or recommend prices for products or services, often in real time, based on a set of data inputs." It goes on to warn that algorithmic pricing could help and hurt competition, such as by making it easier for consumers to switch companies or limiting consumer choice by consolidating market power.

Therefore, the bureau wants those with "experience with algorithmic pricing and its potential impacts on competition" to help provide guidance on how to better respond. Specifically, the bureau says it wants to highlight the following key questions about algorithmic pricing:

• How it is used in Canada, and how prevalent it is.
• Where the data for pricing algorithms comes from.
• How it could impact markets and consumers.
• What challenges it presents for competition authorities.

The bureau is accepting feedback until July 22 through its online feedback form or by mail (Competition Promotion Branch, Competition Bureau, 50 Victoria Street, Gatineau, Quebec, K1A 0C9).

The bureau has been especially busy in recent months, having filed lawsuits against the likes of Cineplex and DoorDash over deceptive pricing practices.