Item - 2026.EX33.33

The Executive Committee recommends that:

1. City Council direct the City Manager, in consultation with the City Solicitor and the Executive Director Municipal Licensing and Standards, to identify all possible mechanisms for the City of Toronto to ban and regulate surveillance pricing that increases prices on groceries, including those sold online and delivered within the City, and report to the new term of City Council in the first quarter of 2027 with options for consideration.

2. City Council request the Executive Director, Municipal Licensing and Standards and the General Manager, Economic Development and Culture to report to the Executive Committee in the first quarter of 2027 with a jurisdictional scan and analysis of existing regulatory authorities, to inform the development of recommended actions requested in Recommendation 1 above that would enable:

a. at minimum, unambiguous disclosure to consumers, in plain language, when personal data is being used for algorithmic personalized pricing practices and when any other algorithmic pricing practices that raise prices for individual consumers are being employed;

b. up to the full prohibition of algorithmic pricing practices that raise prices for individual consumers;

c. consumer protection through the restriction of predatory business practices involving consumers’ personal data, including the option for consumers to opt-out; and

d. greater transparency about the use of electronic shelf labelling systems.
 

3. City Council request the Government of Ontario to ban the practice of surveillance pricing and strengthen the Consumer Protection Act to protect Ontarians from predatory pricing technologies.
 

4. City Council request the General Manager, Economic Development and Culture to collaborate with the Government of Canada to advance measures and share data that will support food security, competition and affordability through the new Food Security Strategy and AI Strategy.
 

5. City Council direct the City Manager to request the advice of the Ministry of Innovation, Science and Economic Development on how current federal regulation addresses private sector collection and monetization of individual user data, including algorithmic pricing practices, and to identify any updates required to the Personal Information Protection and Electronic Documents Act to ensure privacy protections and equitable outcomes for residents, and report back on the results of this request to the Executive Committee in the first quarter of 2027.
 

6. City Council direct the City Manager to request the advice of the Competition Bureau Canada on how current federal regulation addresses private sector collection and monetization of individual user data, including algorithmic pricing practices, and to identify any updates required to ensure privacy protections and equitable outcomes for residents, and report back on the results of this request to the Executive Committee in the first quarter of 2027.

7. City Council direct the City Manager to request the advice of the Office of the Privacy Commissioner of Canada on how current federal regulation addresses private sector collection and monetization of individual user data, including algorithmic pricing practices, and to identify any updates required to ensure privacy protections and equitable outcomes for residents, and report back on the results of this request to the Executive Committee in the first quarter of 2027.
 

8. City Council forward the Item to the Association of Municipalities of Ontario and the Federation of Canadian Municipalities for consideration.

Torontonians are struggling with rising costs, making tough choices to make ends meet. At the same time, big tech and retail giants are capitalizing by monitoring our activity and using the information to extract maximum profit. Surveillance pricing – also known as algorithmic personalized pricing – uses your personal data to change the price of groceries and other items. The goal is simple: to charge the customer as much as possible using personal data to determine what each individual will pay. That means the shelf price of an item can change based on who you are, where you are, or what time it is.

Manitoba introduced legislation to ban this practice. Recently, the federal government committed to explore strengthening privacy protections against this as part of the federal Artificial Intelligence (AI) strategy.

The City of Toronto is taking action to reduce costs for people, especially when it comes to groceries. We’ve expanded school food programs to reach every student by this fall, saving families with two children $900 a year off their grocery bill. In March, Council passed a motion directing City staff to explore municipal levers to bring grocery costs down. That includes supporting independent grocers, developing a municipal grocery pilot that leverages Toronto’s public food terminal, public markets, and community partners in food security, and working with other levels of government to ban anti-competitive land covenants.

There is more we can do. The City of Toronto Act provides authority to regulate for the purpose of consumer protection and the economic well-being of Torontonians. This motion directs staff to explore every legal mechanism within the City of Toronto’s power to ban surveillance pricing on groceries.

The City should address these emerging predatory practices to protect Torontonians and make life more affordable. As the level of government closest to peoples’ daily lives, we cannot ignore these practices or simply wait for the federal or provincial governments. We must do what we can to ensure large companies don’t take advantage of Torontonians.

The Executive Committee recommends that:

1. City Council direct the City Manager, in consultation with the City Solicitor and the Executive Director Municipal Licensing and Standards, to identify all possible mechanisms for the City of Toronto to ban and regulate surveillance pricing that increases prices on groceries, including those sold online and delivered within the City, and report to the new term of City Council in the first quarter of 2027 with options for consideration.

2. City Council request the Executive Director, Municipal Licensing and Standards and the General Manager, Economic Development and Culture to report to the Executive Committee in the first quarter of 2027 with a jurisdictional scan and analysis of existing regulatory authorities, to inform the development of recommended actions requested in Recommendation 1 above that would enable:

a. at minimum, unambiguous disclosure to consumers, in plain language, when personal data is being used for algorithmic personalized pricing practices and when any other algorithmic pricing practices that raise prices for individual consumers are being employed;

b. up to the full prohibition of algorithmic pricing practices that raise prices for individual consumers;

c. consumer protection through the restriction of predatory business practices involving consumers’ personal data, including the option for consumers to opt-out; and

d. greater transparency about the use of electronic shelf labelling systems.
 

3. City Council request the Government of Ontario to ban the practice of surveillance pricing and strengthen the Consumer Protection Act to protect Ontarians from predatory pricing technologies.
 

4. City Council request the General Manager, Economic Development and Culture to collaborate with the Government of Canada to advance measures and share data that will support food security, competition and affordability through the new Food Security Strategy and AI Strategy.
 

5. City Council direct the City Manager to request the advice of the Ministry of Innovation, Science and Economic Development on how current federal regulation addresses private sector collection and monetization of individual user data, including algorithmic pricing practices, and to identify any updates required to the Personal Information Protection and Electronic Documents Act to ensure privacy protections and equitable outcomes for residents, and report back on the results of this request to the Executive Committee in the first quarter of 2027.
 

6. City Council direct the City Manager to request the advice of the Competition Bureau Canada on how current federal regulation addresses private sector collection and monetization of individual user data, including algorithmic pricing practices, and to identify any updates required to ensure privacy protections and equitable outcomes for residents, and report back on the results of this request to the Executive Committee in the first quarter of 2027.

7. City Council direct the City Manager to request the advice of the Office of the Privacy Commissioner of Canada on how current federal regulation addresses private sector collection and monetization of individual user data, including algorithmic pricing practices, and to identify any updates required to ensure privacy protections and equitable outcomes for residents, and report back on the results of this request to the Executive Committee in the first quarter of 2027.
 

8. City Council forward the Item to the Association of Municipalities of Ontario and the Federation of Canadian Municipalities for consideration.

Torontonians are struggling with rising costs, making tough choices to make ends meet. At the same time, big tech and retail giants are capitalizing by monitoring our activity and using the information to extract maximum profit. Surveillance pricing – also known as algorithmic personalized pricing – uses your personal data to change the price of groceries and other items. The goal is simple: to charge the customer as much as possible using personal data to determine what each individual will pay. That means the shelf price of an item can change based on who you are, where you are, or what time it is.

Manitoba introduced legislation to ban this practice. Recently, the federal government committed to explore strengthening privacy protections against this as part of the federal Artificial Intelligence (AI) strategy.

The City of Toronto is taking action to reduce costs for people, especially when it comes to groceries. We’ve expanded school food programs to reach every student by this fall, saving families with two children $900 a year off their grocery bill. In March, Council passed a motion directing City staff to explore municipal levers to bring grocery costs down. That includes supporting independent grocers, developing a municipal grocery pilot that leverages Toronto’s public food terminal, public markets, and community partners in food security, and working with other levels of government to ban anti-competitive land covenants.

There is more we can do. The City of Toronto Act provides authority to regulate for the purpose of consumer protection and the economic well-being of Torontonians. This motion directs staff to explore every legal mechanism within the City of Toronto’s power to ban surveillance pricing on groceries.

The City should address these emerging predatory practices to protect Torontonians and make life more affordable. As the level of government closest to peoples’ daily lives, we cannot ignore these practices or simply wait for the federal or provincial governments. We must do what we can to ensure large companies don’t take advantage of Torontonians.