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Canadian Breadmakers Settle Price-Fixing Lawsuit

By  |  July 25, 2024
price-fixing

Canadian breadmakers Loblaw Companies Limited and its parent company George Weston Limited have announced a settlement of $500 million to resolve a class-action lawsuit over their involvement in a bread price-fixing scheme. This agreement marks a major step in addressing a long-standing controversy that has affected numerous Canadian consumers.

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    The class-action lawsuit was filed against several major retailers and suppliers, including Loblaw, George Weston, Metro, Walmart Canada, Giant Tiger, and Sobeys along with its parent company, Empire Co. Ltd. The plaintiffs accused these companies of participating in a 14-year conspiracy from 2001 to 2015, which artificially inflated the prices of packaged bread across Canada.

    Under the terms of the settlement, George Weston will contribute $247.5 million in cash, while Loblaw will pay $252.5 million. Loblaw’s payment includes $156.5 million in cash and $96 million in credit, previously distributed to customers through the Loblaw Card program. This program was part of Loblaw’s earlier efforts to compensate consumers affected by the price-fixing scandal.

    Galen Weston, the chair of Loblaw and the chair and chief executive of George Weston, issued a public apology on behalf of both companies. “This behaviour should never have happened,” Weston stated. “We have the privilege of serving Canadians from coast to coast. That privilege needs to be earned each and every day. Reaching a settlement on this matter was the right thing to do in response to previous behaviour that did not meet our values and ethical standards.”

    The allegations brought forward in the lawsuit claim that the involved companies colluded to fix bread prices, leading to consumers paying more than they should have for a basic staple. The settlement is seen as a significant move towards rectifying the impact of these actions on the Canadian public.

    This settlement is one of the largest in Canadian history concerning price-fixing and is expected to set a precedent for corporate accountability and consumer protection.

    Source: CBC