Proposed legislation targets predatory grocery pricing

The Manitoba government is taking action to ensure grocery pricing based on customer data doesn’t rear its predatory head in the province.

The practice hasn’t been seen here yet, but has appeared elsewhere.

“We’re strengthening consumer protection so that prices are fair, transparent and consistent with your shopping,” Finance Minister Adrien Sala said Tuesday, introducing proposed legislation that would prevent data — including customer segment, location, time or demand — from being used to alter product costs.

A 2025 Consumer Reports investigation found Instacart was using artificial intelligence to alter its prices in the United States. The company, which faced public backlash, says it no longer employs the practice.

The Canadian Federation of Independent Grocers has repeatedly said the practice doesn’t occur in Canada.

Manitoba’s new legislation is “looking for a problem,” said Gary Sands, a senior vice-president of the federation.

Bill 49 would amend The Business Practices Act to add a clause that says unfair business practices may occur through the use of algorithms, data analytics, machine learning and artificial intelligence.

Electronic shelf labelling systems, online retailers and personalized algorithmic pricing would be acknowledged in the law.

Sands said the federation isn’t opposed to the legislation, but it’s “puzzled” by it.

Customers are sensitive to grocery prices, given the higher cost of living, Sands said, so companies would have trouble adjusting prices during different hours of the day. He highlighted the blowback received by Instacart.

If Bill 49 passes, Manitoba’s consumer protection office could go after businesses accused of predatory pricing. The provincial branch receives and investigates complaints. The law would apply to physical and online retailers; it would not affect loyalty points.

Companies found guilty of predatory pricing would be subject to fines and administrative penalties. They could be forced to end the practice.

Bill 49 follows the launch in February of a government grocery study. The Manitoba Bureau of Statistics was tasked with investigating differential pricing, antitrust and anti-competition policies, supply chain vulnerabilities and geographic food deserts.

The study is slated to be completed before summer.

gabrielle.piche@winnipegfreepress.com