Canada's proposed surveillance pricing rules, aimed at preventing companies from using personal data to manipulate prices, are not expected to come into effect before 2028, according to industry experts and government sources. The delay stems from complex technical and legal challenges in defining and enforcing such practices.
Background on Surveillance Pricing
Surveillance pricing involves companies collecting user data—such as browsing history, location, and purchasing habits—to set personalized prices. Critics argue this practice undermines fair competition and consumer trust, while proponents claim it can lead to discounts and tailored offers. Ontario's NDP has been particularly vocal, pushing for a ban on the practice.
Why the Delay?
The federal government has been consulting with stakeholders, including businesses, privacy advocates, and international partners, to craft effective regulations. However, the complexity of monitoring and enforcing rules across digital platforms, combined with the need to align with global standards, has slowed progress. Officials indicate that a 2028 timeline is realistic, given the need for thorough policy development and industry adaptation.
Impact on Consumers and Businesses
Consumer groups express disappointment, arguing that delayed rules leave Canadians vulnerable to unfair pricing. Meanwhile, some businesses welcome the extra time to adjust their data practices. The delay also allows for further study of how surveillance pricing affects vulnerable populations, such as low-income users who may face higher prices based on their data profiles.
International Context
Canada is not alone in grappling with this issue. The European Union's General Data Protection Regulation (GDPR) already imposes strict limits on data use, while the United States is considering similar measures. Canada's approach will likely draw on these examples, but tailoring rules to the domestic market takes time.
Next Steps
The government plans to release a discussion paper in late 2026, followed by public consultations and draft legislation in 2027. If all goes as planned, final regulations could be in place by early 2028. In the meantime, the Competition Bureau will continue to monitor and address egregious cases of price discrimination under existing laws.
