Grocery giant Loblaw (Loblaw Companies Limited) and parent company George Weston Limited announced yesterday a $500 million settlement had been reached concerning their involvement in a bread price-fixing scandal.
“We are sorry for the price-fixing behaviour we discovered and self-reported in 2015. This behaviour should never have happened,” said Galen G. Weston, Loblaw’s chair and chair and CEO of George Weston.
“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.”
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The total settlement includes a cash payment of $404 million and $96 million that has already been paid through the “Loblaw Card program,” according to a news release from George Weston Limited.
The decision had not been finalized or received court approval as of July 25. Once approved, it will be the largest anti-trust settlement in Canadian history according to class action firm LPC Advocats
In late 2017, Canada’s competition bureau began an investigation over allegations of industry-wide bread price fixing between the late 2000s and early 2010s.
In early 2018, customers were offered $25 gift cards as an olive-branch related to the price-fixing. CBC reported at the time that those who received the cards could still participate in a class-action suit, but the $25 would be deducted from any payout.
The parties named in the class action suite are Loblaw, George Weston, Canada Bread, Sobeys, Metro, Wal-Mart and Giant Tiger, according to LPC Advocats’ website.
The bureau found grocers had colluded to raise bread prices.
In 2023, Canada Bread (Bimbo Canada), which makes Dempsters, Villaggio, Hostess and other familiar brands, was fined $50 million for its part in the price-fixing.
