Surveillance pricing: Is it poor business practice?

As a small business coach in Toronto, I’ve noticed a rising trend that makes business owners uneasy—but few know how to name it. Welcome to the age of surveillance pricing—a pricing strategy used to manipulate consumer purchasing based on their interests or needs. A strategy the Canadian competition bureau is familiar with but has not yet really addressed the seriousness of. From the perspective of a marketing coach servicing Canada, I can tell you that it is a practice that shows that corporation decision makers and marketers are ethically and morally bankrupt. Here is an example. You are searching for flights and revisit the site often to take a look around and evaluate your options. The cookies on your browser allows the analytics to spot you as a very interested perspective flyer, and they raise the price according to the demand you reveal by revisiting.

Recently I learned about the Kesha concert in downtown Toronto. For over a month I watched the pricing as I was looking to find a friend who liked Kesha and wanted to join me. The tickets started at $65 CAD, and continued to rise every single time I logged back into Ticketmaster. Despite so many verified resale tickets being thrown back into the pool of options, the price continued to rise all the way up to $160 CAD. I believe I was a victim of surveillance pricing.

Admittedly, I do not clear my cookies enough because I like to have easy access to the sites I frequent and it is simply inconvenient to sign in all the time. A practice I am now reconsidering.

What Is Surveillance Pricing?

Surveillance pricing is when businesses monitor competitors’ pricing, sales tactics, and promotions—often in real time—and adjust their own prices accordingly. It is an automated approach that happens behind the scenes with advanced AI tools.

Why Does it Occur?

Simple answer - profit. Businesses want to get the most out of the consumer.

Is It Legal?

Like an old school facebook relationship status, it’s complicated.

Surveillance pricing is legal—but only as long as it doesn’t cross into anti-competitive practices, like price fixing or collusion. In Canada, the Competition Bureau monitors for anything that smells fishy.

If you are a small business owner who wants to save money, then be mindful as you purchase online. If something doesn’t seem right in your purchasing process, clear your cookies and caches, or price shop it on another device. The bigger question is, is it ethical? Answer - Hard no! There should be one price for everyone despite their interest online. It is deceptive and manipulative.

Final Thought from a Small Business Coach in Toronto

Surveillance pricing is real. But so is integrity. Book a discovery call to explore one-on-one coaching that turns your pricing into a powerful marketing strategy.

Written by Ofra Nissani, a trusted small business coach in Toronto supporting entrepreneurs by creating strong strategies and systems.