Should Algorithmic Pricing be Banned?

Last month you may have noticed the opposition NDP calling to ban algorithmic pricing outright while the Government says the decision should be left to the “market” to determine.

With talk of the outright banning of Algorithmic pricing we thought it was time to catch up with local expert, Machine Learning Engineer, Khasir Hean and organizer with Technologists for Democracy.

Hean references the province of Manitoba as having taken a leadership role in addressing algorithmic pricing. He says:

“We applaud Manitoba’s steps towards restricting algorithmic pricing from being used by grocers and retailers.

Algorithmic pricing doesn’t benefit consumers, especially when applied to essentials like food, housing and transportation. It doesn’t provide any guarantee of lower prices – in fact, it’s designed to charge the highest price that consumers will pay at any given moment.

We urge other jurisdictions to follow in Manitoba’s footsteps, and restrict algorithmic pricing from essential services.”

Hean also believes transparency is of the utmost importance and while regulations are necessary it must be openly shared with the jurisdictions impacted by any changes:

On transparency Hean says:

“It’s important to know what goes into deciding how prices are set using algorithmic pricing. Similar to nutrition facts labels and ingredient lists, labels on algorithmic pricing would help consumers make more informed purchasing decisions. Labels might include information such as: what data is used in the pricing algorithm like location, credit score, current weather, and so on; if the pricing model was created in-house or outsourced to a third party; or whether algorithmic pricing is even in effect.

Greater transparency is needed around algorithmic pricing.”

As the machines get smarter and as they are given more autonomy it’s good for you to stay informed. One way to do that is to learn more about the work of Technologists for Democracy. Sign up for their updates and join them for events like this weekend’s screening of The End of the Internet at the Revue Cinema.