Toronto could ban ‘surveillance pricing’ for groceries, Olivia Chow says

[00:00:00]Mayor Chow was about to speak at City Council right now. Had an executive committee. Let's listen in live. Scott, thank you.

[00:00:04]>> Alejandra Bravo.

[00:00:06]If you walk into grocery store, on average, everything is about 30% more expensive than it was in 2020.

[00:00:16]>> [sighs] >> 2 L of milk that might have cost you $4.50 then is around $6 now.

[00:00:24]Disruption to global supply chains, tariffs imposed by Donald Trump, global uncertainty has driven up costs for all of us.

[00:00:33]But now, something else is starting to happen. That 2 L of milk might cost $6 for one person and $6.75 for someone else at the exact store, depending on what the retailer know about these two people.

[00:00:51]By analyzing our personal data, our retailers can charge more for milk from a busy mother of three whose kids go through multiple cartons a week.

[00:01:03]Surveillance pricing means the price depends on who's looking and when they're looking.

[00:01:11]Baby formula for her infant has already increased from $30 to $50 in 6 years.

[00:01:18]But now, because they know she needs it and she doesn't have time to go to a second store, retailers are using surveillance pricing and they can change charge her. They can even charge her even more.

[00:01:35]Two people can search for the same item and see two different prices.

[00:01:40]Across industry, big tech and retail giants are extracting even more profit by monitoring your online activity.

[00:01:49]They then use it to charge you the highest amount they think you will pay.

[00:01:55]Surveillance pricing uses your personal data to change the price of whatever you're trying to buy.

[00:02:04]Most shoppers ever know it's happening.

[00:02:08]And there are different ways to do it, but the goal is always the same. To charge you as much as possible, often using your personal data to figure out the most that you will pay.

[00:02:21]Reports indicate that Walmart and Amazon are among the companies using it in in in the US because it's commonplace in the US and it won't stop there unless we act.

[00:02:34]Dozens of companies offer algorithmic pricing services to retail services and reports suggest that Canadian consumers have begun to see it on the grocery shelf.

[00:02:51]Grocery giants already running away with profit while families struggle to put food on the table.

[00:02:58]As your mayor, I will not accept price gouging.

[00:03:03]We will fight the rising cost of groceries and protect Torontonians from being gouged by corporate giants looking to maximize the profit on the backs of regular people.

[00:03:14]So this morning, Council Bravo and I submitted a letter to Executive Committee on making grocery price fair.

[00:03:23]The city can and will ban surveillance pricing in Toronto to stop price gouging at the grocery store.

[00:03:33]To protect people now before it's too late.

[00:03:37]The City of Toronto Act give us the authority to regulate to protect consumers and the economic well-being of our residents. Our motion directs city staff to identify all possible mechanism to ban surveillance pricing following city bylaws already in place that require price transparency in other retail sectors.

[00:04:02]As the level of government closest to people day-to-day lives in an affordability crisis, we need to reduce people's cost.

[00:04:11]We are doing that already by saving families money on groceries with our school food program.

[00:04:19]And by freezing TTC fares.

[00:04:21]We're opening up more free spaces like libraries open 7 days a week.

[00:04:26]And bringing down the cost of rent by building thousands of homes you can afford to live in.

[00:04:33]There's always more we can do and we will go further. We will protect you from this grocery rip-off before it becomes an accepted practice.

[00:04:43]Because by then, it will be too late.

[00:04:47]Uh Council Bravo, you want to say a few words?

[00:04:50]>> Yes, thank you.

[00:04:51]>> Okay, we're listening as uh Mayor Olivia Chow speaking ahead of Executive Committee this morning again talking about the idea of getting rid of potential surveillance pricing in the city of Toronto. She and Councillor Alejandra Bravo put that forward. So, we'll have more on that coming up.