Western Grocer Serving the industry since 1916
The Manitoba government says it’s launching a study on “predatory pricing” at grocery stores.
Various governments in Canada have taken measures to address grocery affordability but Manitoba is going further by launching “one of the first comprehensive, province-led studies focused on understanding grocery pricing practices,” a news release from the government states.
The study “will examine predatory or differential pricing practices, including cases where companies use consumer data or purchasing patterns to raise prices,” the province’s news release states, adding, “these practices can result in some consumers paying more than others for the same groceries.”
The most recent figures from Statistics Canada show Manitoba had the second-highest inflation rate for groceries among provinces during the 12-month period that ended in December.
It will take a sweeping look at food prices and affordability provincewide, including access, availability, and market concentration — and whether fees or taxes could be changed to reduce grocery bills.
It will also consider whether the province should expand its control over the retail price of one-litre milk cartons to larger milk containers.
But the main focus of the study is predatory pricing, and the government intends to look at automated pricing systems powered by algorithms and shopping patterns to adjust prices in real time. The price swings are primarily on items bought online through third-party apps. Companies collect information from online shopping, loyalty programs, location data and even browsing patterns that can be used to predict what someone is willing to pay.
