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Federal competition watchdog alleges that Loblaws was not the only grocer to be involved in bread fixing scheme

January 31st, 2018  |  Canadian Business

Back in December it was revealed that Loblaws and George Weston Ltd were involved with a countrywide bread price fixing scheme that spanned over a decade. The story was hard to miss as it was a hot topic across the country, especially as they announced that customers would be eligible for a $25 gift card to make up for any wrongdoing.

No criminal charges were filled over the debacle, but the Canadian grocery chain has had a hard couple of months in the press. The $25 Loblaws gift card has faced much criticism, and many are saying it does not make up for years of fooling customers.

Now however, it looks like Loblaw Company Ltd and George Weston Ltd are no longer the only ones in hot water. According to The Competition Bureau Walmart Canada Corp, Sobeys Inc, Metro Inc, and Giant Tiger Stores Ltd also committed indictable offences under the Competition Act.

Allegedly, Canada Bread and George Weston Ltd agreed to fix bread prices back in 2001, and then got their retailers on board. However, the retailers stated that they would only participate if their competitors joined in as well, fixing the entire market.

"Further, the retailers demanded that the suppliers actively manage retail competition by coordinating retail prices for their respective fresh commercial bread products and ensuring pricing alignment amongst the retailers," the watchdog’s documents read.

Loblaw and George Weston had previously approached The Competition Bureau regarding the situation, gaining them immunity. And while the other retailers have agreed to comply with the investigation, many are denying the accusations. However, Loblaw spokesperson Kevin Groh said Wednesday the documents are "unequivocal."

"We have admitted our role, and you cannot price fix alone," he said.