Payouts in the class-action lawsuit against Loblaw for its role in the Great Canadian Bread Price-Fixing Scandal are now going out, which is great news… but also not.
The $49.11 deposits, being paid out to those who registered for the lawsuit, are a drop in the bucket compared to what the scandal has cumulatively cost Canadian households – and a reminder of the big competitive problems plaguing the industry.
For 15 years, Loblaw and its fellow large grocers – including Metro, Sobeys, Walmart and Giant Tiger – conspired to raise the price of bread. While Loblaw is finally paying something for its role in the cartel, the public is in the dark as to what – if anything – is happening with the other participants.
Worse still, what little is known about the scandal suggests that price-fixing on other products may be happening and the chains themselves haven’t changed their behaviour, if the string of continuing controversies is anything to go by.
Keldon Bester, executive director of the Canadian Anti-Monopoly Project, says strong action is needed by all levels of government to shed more light on the various ways in which the nation’s large grocers are colluding and preventing competition in the sector.
He joins Do Not Pass Go this week to discuss why the current payouts are good news for consumers, but also to explain why Canada’s approach to fixing the industry’s structural problems isn’t even half-baked.
Check out the Canadian Anti-Monopoly Project here.
