Competition Bureau AI Report and RCC Letter - Retail Council of Canada
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Competition Bureau AI Report and RCC Letter

January 30, 2025

The Competition Bureau released their “What we heard” report in early 2025 after consulting on artificial intelligence and competition in summer 2024.

The Bureau received over 25 consultation responses, including a letter from RCC. RCC called for the Bureau to harmonize its AI definition with that of other key regulators and bills and suggested that any more changes to Canada’s competition regime to deal with AI would be premature.

The Bureau’s report organizes wide-ranging issues into four key takeaways: rapid AI evolution, investment, anti-competitive conduct and collaboration.

While retailers are only one component of the AI marketplace – generally part of what the report calls the “deployment layer” – the Bureau does flag some especially retail-relevant areas:

  • Key Takeaway 3.2: The concern that algorithmic pricing can lead to anti-competitive conduct. For example, that AI programs could learn to collude with each other to set prices like an automated cartel, without direct human knowledge or review. This could include AI collusion in retail pricing.
  • Key Takeaway 3.3: The concern that AI can be used for deceptive marketing, including deepfakes and automated campaigns, to quickly generate false advertising and misleading claims at scale. There was broad support among other respondents for transparency around the use of AI in marketing materials, such as labelling, although views differed on how to implement. Views also differed on leaving existing law as is – RCC’s preference – with some calling for regulatory intervention in the form of guidelines or legislative amendments.
  • Key Takeaway 4.3: The concern that a shared definition of AI is needed. A number of respondents, including RCC, pointed to this need. Inconsistent definitions between regulators would add unnecessary friction and compliance cost. The Bureau suggests that it will adapt the definition proposed in federal Bill C-27’s Artificial Intelligence and Data Act (AIDA). However, that may not resolve discrepancies: Bill C-27 was wiped from the order paper with the pro-rogation of Parliament in January 2025 and seems unlikely to be restored when Parliament re-opens. RCC is monitoring further developments.

Link to consultation report

Link to RCC letter

Please contact kskipton@retailcouncil.org with any questions.