21 July 2025
Algorithmic pricing and competition
As part of the Competition Bureau's consultation on algorithmic pricing, Option consommateurs is sharing its concerns. Algorithmic pricing refers to the use of various automated algorithms to automatically set or recommend prices in real time based on market or consumer data.
We think this way of setting prices raises a few issues for Canadian consumers.
First, it makes it more difficult for consumers to understand and compare prices. We share some thoughts on this subject regarding partial price indication and the assessment of the usual price.
Second, we highlight the risk that algorithmic pricing could lead to higher prices for consumers.
Next, we raise the issue that the possibility of algorithmic collusion poses challenges for regulatory agencies. Finally, in terms of privacy protection, the concentration of consumers' personal information can have an impact on competition, while the use misleading interfaces can influence consumers to share their personal data.
See also...
Artificial intelligence and competition
Option consommateurs believes that merchants can use artificial intelligence, but they must not mislead consumers, and companies should take the necessary steps to ensure that representations adequately reflect the products or services they offer consumers.