It's been 5 years since the bread price-fixing probe started. We still don't have any answers
CBC
Consumer furor over rising food prices has reignited anger over the infamous bread price-fixing scandal, which became public in 2017 and allegedly involved several major grocers colluding to inflate bread prices.
"It's time to get answers," said anti-poverty activist Irene Breckon, 76, of Elliot Lake, Ont. "It's not right that the poor people are suffering so much more, and the rich people … keep bumping up their prices."
According to data released Tuesday, grocery prices have climbed by 11 per cent year over year.
The federal government is working on a grocery code of conduct to help foster competition in the industry. And in response to allegations grocers are raking in excessive profits, both the government and Canada's Competition Bureau are examining grocery pricing in Canada.
During a parliamentary committee hearing last month, Loblaw Companies Ltd. (which owns Loblaws and Superstore) and Empire Company Ltd. (owners of Sobeys and Safeway), said they're not profiteering but, instead, are passing on higher costs from suppliers.
Meanwhile, the Competition Bureau is still investigating the bread price-fixing scheme — almost five-and-a-half years after launching the probe on Aug. 11, 2017.
No charges have been laid and the competition watchdog says there is no conclusion of wrongdoing at this time.
"The Bureau must conduct a thorough review of all the facts of a case before reaching any conclusions regarding potential violations of the law," said spokesperson Marie-Christine Vézina in an email.
She offered no timeline, and said, by law, the bureau must conduct its work confidentially.
Almost eight years ago in March 2015, Loblaw alerted the Competition Bureau to its part in an allegedly industry-wide price-fixing agreement to artificially inflate the price of some packaged bread from 2001 to 2015.
Loblaw received immunity from prosecution for its co-operation. It then offered customers $25 gift cards to make amends.
In 2017, the bureau began investigating other alleged parties: grocers Sobeys, Walmart, Metro and Giant Tiger, and producer and distributor Canada Bread. According to court records, in 2019, it also targeted Maple Leaf Foods, which was the majority shareholder of Canada Bread until 2014.
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Food distribution expert Sylvain Charlebois claims the investigation is taking too long, and that the lack of results is eroding Canadians' trust at a time of escalating food prices.
