Big grocers must pay $500 million in anti-trust scandal: Here's what you need to know about overpaying for bread

Current settlement: $500 million

The settlement will involve a cash payment by George Weston Limited and Loblaw Companies to the tune of $404 million, with $96 million having already been paid by Loblaw through the previously administered Loblaw Card program. Specifically, George Weston will pay $247.5 million in cash, while Loblaw will foot the remaning $252.5 million.

Minus the court-approved expenses, the finer details for the doling out of the settlement will be revealed when court approval for a plan of distribution is sought before the end of the year and It will be dispersed amongst eligible class members. if approved, the settlement will resolve all the plaintiffs' claims against Loblaw and George Weston relating to this matter.

A statement from Loblaw Companies explains it had discovered the industry-wide arrangement in March 2015, reporting its findings to the Competition Bureau and took several actions to stop the price fixing practice.

Loblaw is the nation’s largest retailer, with more than 2,400 corporate, franchised and associate-owned locations. It has more than 221,000 full- and part-time employees.

Loblaw chair Galen Weston, who is also chair and chief executive office for George Weston, apologized on behalf of the companies. In a public announcement, Weston stated: "This should have never happened."

Why this matters to Canadians

The Competition Bureau began investigating alleged bread price-fixing in January 2016. Weston Foods and Loblaw, both subsidiaries of George Weston at the time, had previously admitted their participation in an "industry-wide price-fixing arrangement" and received immunity from prosecution in exchange for co-operating.

At least $1.50 was added to the price of a loaf of bread during the 16-year conspiracy, the bureau alleged in court documents.

Potential payout

“This will also be the largest distribution in a class action in Canadian history,” explained Strosberg. “I would assume that half the country is going to apply.”

Strosberg said the courts in Quebec and Ontario will oversee the payout process. Canadians who meet the eligiblity requirements and want to make a claim need to keep an eye out, as an electronic form will be required by each person or household.

Strosberg said it’s also still unclear how much of the settlement will be collected by the five law firms that have been litigating the case for the last seven years.

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Ongoing lawsuits on behalf of Canadians who overpaid for packaged bread products

There are still ongoing class actions against Canada Bread, Sobeys, Metro, Wal-Mart Canada and Giant Tiger, other retailers that were also allegedly involved in the industry-wide conspiracy.

In June 2023, Canada Bread was fined $50 million after it pleaded guilty to four counts of price-fixing related to packaged bread products under the Competition Act.

It was determined the industry-wide price-fixing had been ongoing for 14 years between 2001 and 2015.

"Importantly the settlement provides access to evidence to be used in pursuing the case against the remaining defendants," said Jim Orr, partner at Orr Taylor LLP. "The expectation is that this will result in further significant monetary recovery for Canadian consumers."

Fight price fixing with price matching at Canadian retailers

Price matching can make shopping at Canadian retailers less hard on your wallet, so we have answered some of your pressing questions about where you can and can't take advantage of this perk throughout the country.

Price matching at grocery stores: FAQs

Does Loblaws price match?

Not all Loblaws stores price match but the ones that do include: Real Canadian Superstore, Maxi and No Frills.

Does Food Basics price match?

Food Basics does not price match but deals and savings from the grocer can be brought to stores that do perform price matches.

Does Metro price match?

Metro does not price match.

Which grocery stores price match?

Groceries stores that price match include: Loblaws, Real Canadian Superstore, Maxi, Giant Tiger, FreschCo and No Frills.

Does Shoppers Drug Mart price match?

No, Shoppers Drug Mart does not price match but it does offer value to its customers through its loyalty program PC Optimum, personalized deals and special discounts.

Does Best Buy price match?

Best Buy does offer price match with its ‘Low Price Guarantee’. If you find a lower price either online, in-store or in print, you can match the price before you purchase or within 30 days of purchase with the original receipt. Additionally, if Best Buy’s price drops after you make a purchase, you’re also eligible for a refund of the difference within 30 days.

—with files from David Saric and Romana King