At least 7 companies investigated in bread price-fixing probe

George Weston Ltd., Loblaw Companies Ltd. admits participating in bread price-fixing arrangement

The Competition Bureau’s investigation into allegations of bread price-fixing includes at least seven companies from bakery wholesalers and discount chains to Canada’s three major grocers, according to court documents.

George Weston Ltd. and Loblaw Companies Ltd. admitted Tuesday to participating in an industry-wide bread price-fixing arrangement for over a decade and tipping off the country’s competition watchdog.

The Competition Bureau executed search warrants at the offices of a number of grocers earlier this fall, but has said there has been no conclusion of wrongdoing and no charges have been laid.

The investigation began on Aug. 11 and was expanded on Oct. 23.

The search warrants and information to obtain them were sealed because of concerns by the watchdog that the release of the information might compromise its investigation. However, the affidavits sworn by a Competition Bureau investigator to have them sealed were unsealed by the court this week.

According to those affidavits, the regulator is also investigating the alleged involvement of Canada Bread, Walmart, Sobeys, Metro and Giant Tiger as well as “other persons known and unknown.”

“The bureau is collecting facts to determine the precise time frame of, and the participants in, the alleged conspiracy,” Simon Bessette, a senior competition law officer, swore in an affidavit on Oct. 26.

“Analyzing the records the bureau obtains from the search warrants sought in the ITO will take time; however, it would only be after such analysis is performed that the bureau would be in a position to determine whether additional investigative steps are required.”

“Should details of the bureau’s ongoing investigation be made available to the public, the integrity of the evidence available through further investigative steps and/or court authorizations may be compromised,” Bessette wrote.

Metro said in a statement Tuesday that it continues to co-operate with authorities and it has launched an internal investigation.

“Based on the information processed to date, we have found no evidence that Metro has violated the Competition Act and we do not believe that the bureau’s investigation will have a material adverse effect on the corporation’s business, results of operations or financial condition,” the statement said.

Giant Tiger released a statement Wednesday saying they currently “have no reason to believe that Giant Tiger or any of our employees has violated the Competition Act.”

Walmart Canada spokesman Alex Roberton said in an email that the company “takes its legal obligations very seriously.”

Canada Bread spokeswoman Sylvia Sicuso said Tuesday that the company and its associates “operate with the highest ethical standards” and neither has been charged with any offences.

Giant Tiger, Walmart Canada and Canada Bread all said they are co-operating fully with the investigation.

Sobeys Inc. did not respond to a request for comment, but has previously said it is also co-operating.

Weston and Loblaw said Tuesday they became aware of an arrangement involving the co-ordination of retail and wholesale prices of some packaged breads from late 2001 until March 2015.

The companies said they established an independent compliance office earlier this year and provided training and re-certification to marketing personnel at Weston Bakeries and all merchants and store managers at Loblaw, as well as senior managers at both companies and at parent company George Weston.

The employees responsible for the companies’ role in the arrangement are no longer employed there.

Loblaw is also offering eligible customers a $25 gift card that can be used at its grocery stores across Canada.

The Competition Act prohibits agreements that “prevent or unduly lessen competition or to unreasonably enhance the price of a product,” according to the bureau.

That could include agreements between competitors to fix prices, or to restrict production of a product by setting quotas or other means, which would be considered cartel activities. Penalties for price fixing could include fines of up to $25 million, imprisonment to a maximum term of 14 years, or both.

However, the bureau says price-fixing conspiracies are, by their nature, difficult to detect and prove.

Aleksandra Sagan, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Aces aplenty at Vernon Golf Club

Local track has 14 recorded holes-in-one since April 30

Sad ending in case of missing Vernon senior

Body of Wayne Orser found floating in Okanagan Lake Tuesday, July 7

Vernon murder case back in court

Voir dire held for one of two accused in death of William Bartz in July 2017

North Okanagan district shifts attention to wildfire season

FireSmart, Grab-and-Go Bags and emergency planning among tips for wildfire preparedness

Vernon police deem car fire ‘suspicious’

A vehicle was fully involved last night on 24th Avenue, cause still unknown

84-year-old Okanagan resident finishes 12,000-piece puzzle

Willie Tribiger started the puzzle in 2013, completing it in six and a half years

LETTER: Keep your pooch on a leash

Hey there “responsible dog owner.” I would just like to say thank… Continue reading

LETTER: the cheapest and easiest way to save lives

We are all anxiously awaiting the arrival of a Coronavirus vaccine. So… Continue reading

Fraser Valley woman complains of violent RCMP takedown during wellness check

Mounties respond that she was not co-operating during Mental Health Act apprehension

B.C. sees 12 new COVID-19 cases, no new deaths

Three outbreaks exist in health-care settings

Lost dog swims Columbia River multiple times searching for home

The dog was missing from his Castlegar home for three days.

Booze on beach extended through summer in Penticton

Pilot project will stay in place until Oct. 15

COVID-19: B.C. promotes video-activated services card

Mobile app allows easier video identity verification

ICBC to resume road tests in July with priority for rebookings, health-care workers

Tests have been on hold for four months due to COVID-19

Most Read