Quick answer: Using software or AI to set prices is legal in Canada, but it is not a free-for-all. Dynamic, algorithmic and personalized pricing can raise issues under the Competition Act (misleading pricing, drip pricing and collusion through shared pricing tools) and under privacy law when personal data drives what a customer is charged. The Competition Bureau is actively studying these practices and published what it heard from Canadians in January 2026.

Key takeaways: Know what data your pricing tool uses, never let it hide the real price, be careful about sharing a pricing algorithm or data pool with competitors, and tell customers plainly when prices change based on demand or on who they are.

Why do concert ticket prices change so much?

Anyone who has refreshed a ticket page for a big tour has watched prices jump. Some of that comes from event organizers changing prices, and a lot of it comes from resale markets where sellers use software that adjusts prices automatically based on demand, inventory and competing listings. Ticketing is the example most people know, but the same tools now power ride-share fares, hotel rates, e-commerce discounts and SaaS pricing experiments.

What is the difference between dynamic, algorithmic and personalized pricing?

Dynamic pricing changes prices in real time based on market conditions such as demand, time of day or remaining inventory. Algorithmic pricing is broader: any system, including AI, that sets or recommends prices from data. Personalized pricing goes a step further and tailors the price to an individual based on information about them, such as browsing history, location or device. Critics call that "surveillance pricing."

Is the Competition Bureau looking at algorithmic pricing?

Yes. In June 2025 the Bureau published a discussion paper on algorithmic pricing and competition and invited comments. On January 22, 2026 it published "What We Heard", summarizing 103 responses from individuals and businesses, including companies in the ticketing industry. Consumers raised unfairness, discrimination, price swings on essentials, privacy and lack of transparency. Business and expert respondents pointed to efficiency benefits but also to risks such as tacit collusion when competitors use the same pricing service, and deceptive practices similar to drip pricing. The Bureau said it will keep monitoring the area.

What legal risks should founders watch for?

Misleading prices and drip pricing

The Competition Act prohibits advertising a price that cannot be obtained because mandatory fees are added later, known as drip pricing. An algorithm that shows one price on a listing page and a higher one at checkout can create the same problem. False "limited time" or "only 2 left" urgency messages generated by software are still your representations.

Collusion through shared tools

If several competitors feed data into the same pricing provider and their prices move together, regulators may ask whether the tool is doing the coordinating. Be careful with vendor contracts that pool competitor data, and get advice before joining any industry pricing platform.

Privacy and personal data

Personalized pricing uses personal information, which brings in PIPEDA and, for Québec customers, Law 25, including rules on profiling and automated decision-making. Your privacy policy should disclose it, and you need a lawful basis for the data you use.

Interface design

Countdown timers, pre-checked add-ons and confusing price displays can cross into dark patterns, which regulators increasingly treat as misleading.

What should you do before using AI to set prices?

• List the data inputs your pricing tool uses and remove anything you cannot justify or disclose.
• Make sure the first price a customer sees includes all mandatory fees.
• Review vendor terms for data pooling with competitors and keep a human able to override prices.
• Explain dynamic pricing in your terms of service and at checkout in plain language.
• Test prices across user groups to catch discriminatory outcomes before customers do.

FAQ

Is dynamic pricing legal in Canada?

Yes. Changing prices based on demand is legal. The risks come from how prices are displayed, what data drives them and whether competitors coordinate through shared tools.

Is personalized pricing legal in Canada?

There is no specific ban, but it relies on personal information, so privacy law applies, and pricing that misleads customers can breach the Competition Act. Regulators are watching it closely.

Can a SaaS company use AI to test prices?

Yes, with care. Keep advertised prices accurate, honour the price a customer agreed to, and make sure your SaaS agreement explains how and when prices can change at renewal.

Rolling out dynamic pricing, subscriptions or AI-driven offers? For Founders Law reviews pricing terms, checkout flows and advertising compliance, and drafts terms of service and privacy policies for Canadian tech and e-commerce companies at a fixed fee. Book a free consultation.

Sources: Competition Bureau discussion paper (2025); Competition Bureau, What We Heard (January 2026); written responses to the consultation.

By Brooke Ash, BA, JD, founder of For Founders Law PC, licensed by the Law Society of Ontario. Last reviewed October 26, 2026. General information only, not legal advice. Related reading: what the Meta Ray-Ban backlash teaches AI founders about privacy, Bill C-34 explained, and our startup, AI and tech law glossary.