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Canada: Comp Bureau says seven companies conspired to agree on bread prices

 |  February 1, 2018

Court documents allege five retailers cooperated with two of Canada’s major wholesalers in a price-fixing scandal, leading to serious offences under the Competition Act, according to the Competition Bureau.

Referred to as the 7/10 convention, according to the documents, wholesalers raised the price of bread 7 cents for sale to retailers for 14 years. During that time, retailers would then raise it 10 cents for sale to consumers.

Beginning in 2001, senior officers of wholesalers Canada Bread Ltd. and George Weston Ltd. agreed to raise the prices of bread and individually met with several retailers to see if they would take part, the documents allege.

Retailers like Walmart Canada Corp, Sobey’s Inc, Loblaw, Metro Inc. and Giant Tiger Stores Ltd. were approached. As long as their competitors engaged as well to maintain a fixed price in the market, they would agree to participate in the activity, according to the documents.

Full Content: Financial Post

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