Canada Moves to Restrict Use of Personal Data for Custom Prices

3 hours ago 3
Evan Solomon, Canada's minister of artificial intelligence and digital innovationEvan Solomon, Canada's minister of artificial intelligence and digital innovation Photo by Paige Taylor White /Photographer: Paige Taylor White

Article content

(Bloomberg) — The Canadian government is proposing stricter privacy rules that would limit businesses from using personal data to charge consumers higher prices, while giving individuals more power over how their information is used.

Financial Post

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.

THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account
  • Share your thoughts and join the conversation in the comments
  • Enjoy additional articles per month
  • Get email updates from your favourite authors

Sign In or Create an Account

or

Article content

Prime Minister Mark Carney’s government released legislation on Monday to update the country’s privacy laws. Artificial Intelligence Minister Evan Solomon said the changes would restrict so-called surveillance pricing but stop short of banning it. 

Article content

Article content

Article content

“Companies should not have the ability to use your behavior, your location, your profile, your vulnerabilities, or your personal information to charge unfair prices. Your personal information should not be used against you for price gouging,” Solomon told reporters.

Article content

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

Article content

The minister said the legislation aims to bar the use of data to target consumers with individualized prices when the harms outweigh the benefits. But the government doesn’t want to ban companies from rewarding consumers with better prices — through loyalty reward programs, for example. 

Article content

If passed, the new law would also require organizations to disclose more information about automated decisions, give Canadians the right to have their information deleted under certain circumstances and force businesses to treat children’s data as sensitive.

Article content

Some jurisdictions in Canada and the US have already moved to address the use of artificial intelligence and algorithms to charge consumers more for products and services. Manitoba’s provincial government has brought forward legislation to outlaw surveillance pricing, while a new law in Maryland will make it illegal for grocers and third-party delivery services to use personal data to charge higher prices.

Article content

The practice is also known as algorithmic pricing. A poll conducted by Abacus Data earlier this year found that about half of Canadians said it should be banned, while almost a third said it should be allowed but more strictly regulated.

Article content

Advertisement 1

Read Entire Article