Have you ever searched for a product online, then gone back later and seen a different price? Or discovered that someone else paid less than you did for the same thing? If so, it might not be your imagination. A growing practice called surveillance pricing is changing how some companies set prices. Instead of charging everyone the same price, they use your personal information to decide what price to show you.
This type of pricing isn’t common in Canada yet, but it’s becoming a growing concern. That’s because businesses are collecting more information about their customers and using AI to study it.
Let’s take a closer look at what surveillance pricing is, why it’s raising concerns, and what you can do to protect yourself.
What is surveillance pricing?
Surveillance pricing is when a business uses your personal information to decide what price you see. It’s different from dynamic pricing, where companies change prices for everyone based on supply and demand. Airlines, for example, often charge more during busy travel periods.
Surveillance pricing goes one step further. Instead of charging everyone the same price, a business may show different prices to different people. It uses information like where you live, what you do online, and how you spend your money.
Companies can collect this information from many places. That includes your search history, purchase history, location, loyalty programs, and the device you use. Their goal is simple: figure out the highest price you’re willing to pay.
For businesses, it’s a data-driven strategy. For consumers, it raises important questions about fairness and transparency.
How does surveillance pricing work?
Every time you shop online, you leave behind a trail of data. Retailers and technology companies can use that information to learn about your shopping habits. They can see which products you look at, what you add to your cart, and how often you visit their website. They can also tell if you’ve bought similar items before or usually wait for a sale.
Pricing algorithms then analyze that data in real time to predict your shopping behaviour. If the algorithm thinks you’re unlikely to compare prices, it may show you a higher price. If it thinks you’re budget-conscious or likely to leave without buying, it may offer you a discount instead.
AI has made these pricing systems much more advanced. Instead of looking at just a few details, it can analyze thousands of data points in seconds. That helps it estimate what each customer is willing to pay.
Most businesses still charge the same price to everyone. Not many retailers use surveillance pricing yet, but as companies collect more data, some experts worry it could become much more common.
What makes surveillance pricing controversial?
The biggest concerns with surveillance pricing are fairness and privacy. Like most people, I always assumed that if two people bought the same product at the same time, they’d pay the same price. With surveillance pricing, however, that isn’t always true.
Most of us already know companies collect information about us. For example, YouTube recommends videos based on what you’ve watched, and all social media platforms use data to decide which ads to show you.
What many people don’t realize is that the same data could also be used to decide how much you pay. Instead of just showing you products, companies may use your data to figure out the highest price you’ll pay.
Privacy is a major concern. Companies already collect a large amount of customer data for marketing purposes. Companies already use this data for marketing. If they also use it to set prices, many people feel they’re paying more because of their online activity.
There’s also the issue of fairness. An algorithm may think you won’t shop around. Or it may think you need something right away. If so, it could show you a higher price.
This is similar to drip pricing, where extra fees are added at checkout. In both cases, people may not have all the information they need before they buy.
Are regulators doing anything about it?
Canadian governments and regulators are paying closer attention to surveillance pricing.
The Competition Bureau is looking at how pricing tools may affect shoppers and businesses. It has not banned surveillance pricing. However, it says these tools may raise legal and consumer protection concerns.
Some politicians also want to limit or ban surveillance pricing, especially in grocery stores. They say Canadians deserve clear, consistent prices. Consumer groups also want businesses to be more open about personalized pricing. They also want people to have more control over their personal information.
The rules around surveillance pricing are still developing. Meanwhile, regulators are watching surveillance pricing much more closely.
How can you protect yourself?
Without official rules in place, surveillance pricing may be hard to avoid. You can, however, still make it harder for companies to build a detailed profile about you.
When you shop online, try using a private or incognito browser. Clear your browsing history often and block tracking cookies when you can. Compare prices at a few stores before you buy. If you shop there often, try logging out before you browse.
Also, don’t assume the first price you see is the best one. Buying something expensive? Check prices on different websites. Try another browser or device, and wait a day or two before you buy if possible. Taking a little extra time could save you money.
These same habits can help in other areas of your finances, too. It’s always a good idea to shop around. No matter what you’re buying, comparing your options can help you save money.
Ultimately, surveillance pricing doesn’t always mean you’ll pay more. In some cases, you might even see a lower price than someone else. The bigger problem is that you usually don’t know when or why it’s happening.
If your credit card has already taken a hit because of surveillance pricing, or the cost of living in general, we can help. Our trained credit counsellors will go over your situation with you and explain what debt relief options are available for you. That way you can make an informed decision on how to move forward towards a debt-free life. It all starts by calling for a free consultation.
