Ban on Personalized Online Price Hikes

Summary#

This bill updates Manitoba’s consumer protection law for online shopping and digital pricing. It targets “personalized algorithmic pricing” (custom prices set for each person using data and computer rules) and sets new rules for online sellers and stores that use electronic shelf labels.

• Stops online retailers and online distribution platforms from raising a specific person’s price using personalized algorithmic pricing.
• If a store uses electronic shelf labels, it cannot charge you more at checkout because an algorithm thinks you’ll pay more.
• Treats the use of personalized pricing as important information that must be clearly disclosed.
• Requires online sellers to show the total price, including mandatory fees, in clear and prominent language.
• Says unfair practices can happen through algorithms or AI even if no purchase is completed.
• Extends the time to bring charges to two years from when officials find enough evidence.
• Takes effect on a date the government will set later.

What it means for you#

• Shoppers

  • You should not face hidden, higher “personalized” prices online or at checkout.
  • You should see the full price up front online, including required fees.
  • If a higher price is allowed only with your “express consent,” online sellers must explain the reason in plain language and you must take a clear action to agree.
  • When a company uses your data to set prices, that fact must be disclosed. You may also get more access to the data used about you.

• In‑store customers where digital shelf labels are used

  • The posted shelf price is the price. Stores cannot use algorithms to charge you more at the register than what the shelf shows.
  • Targeted discounts can still be offered, but not targeted markups.

• Online shoppers and marketplace users

  • Online retailers and platforms (including third‑party sellers on big marketplaces) must show prices and mandatory fees clearly and prominently.
  • Required consumer‑protection notices must be easy to find on the seller’s website or app.

• Online retailers, marketplaces, and delivery platforms

  • You may not use personalized algorithmic pricing to increase the price demanded from a specific consumer.
  • You must disclose use of personalized pricing and clearly present total prices and mandatory fees.
  • You may need to explain, in plain language, why a higher price is being charged in situations that require express consent, and capture a clear opt‑in.
  • Consider transparency: fairness will take into account whether data you use about a consumer is also available to that consumer.
  • Ensure ads and representations on online platforms follow the same truth‑in‑advertising rules.

Expenses#

No publicly available information.

Proponents' View#

• Protects people from hidden, individualized markups based on their income, location, device, or other personal data.
• Makes online prices clearer by requiring full price disclosure, including mandatory fees.
• Ensures the shelf price in stores with digital tags is the real price, preventing surprise increases at checkout.
• Updates consumer law for the age of algorithms and AI, closing loopholes even when no sale is completed.
• Gives regulators more time to investigate and act on complex online practices.
• Does not ban personalized discounts; it targets price increases aimed at specific consumers.

Opponents' View#

• Could discourage dynamic pricing tools that sometimes lower prices or match supply and demand.
• Adds compliance steps and costs, which may be hard for small online sellers and third‑party marketplace vendors.
• Vague or changing definitions (set later by regulation) may create uncertainty for businesses.
• Requiring plain‑language explanations and active consent for higher prices could disrupt checkout flows and reduce sales.
• Sharing or explaining data used for pricing may be technically difficult and raise privacy or security concerns.
• Businesses might respond by setting higher base prices for everyone if they cannot adjust prices by customer.