The largest antitrust settlement in Canadian history follows allegations of a 14-year bread price-fixing conspiracy
Loblaw Cos. Ltd. and George Weston Ltd. have agreed to pay $500m to settle two class-action lawsuits related to an alleged bread price-fixing scheme, as reported by BNN Bloomberg.
The lawsuits targeted Loblaw, Weston, Metro, Walmart Canada, Giant Tiger, Sobeys, and Canada Bread Co., accusing them of conspiring to fix the price of packaged bread in Canada. The cases were filed on behalf of all Canadian residents who purchased packaged bread after November 1, 2001.
George Weston announced it would pay $247.5m in cash, while Loblaw would contribute $252.5m, including $156.5m in cash and $96m in credits previously paid under the Loblaw Card program.
Galen Weston, chair of Loblaw and CEO of George Weston, stated, “This behaviour should never have happened.” He added, “We are sorry for the price-fixing behaviour we discovered and self-reported in 2015.”
He emphasized that the companies are committed to earning the trust of Canadians daily.
Loblaw president and CEO Per Bank assured that the company would work hard to regain consumer trust. “We will continue to work hard to deliver on that commitment,” he said.
Plaintiffs' lawyers noted that the payout, pending court approval, is the largest antitrust settlement in Canadian history.
Jay Strosberg, managing partner of Strosberg Wingfield Sasso LLP, remarked, “This is a significant milestone in Canadian class action history and sends a strong message that conduct that harms consumers will not be tolerated.”
The focus now shifts to the ongoing class actions against Canada Bread, Sobeys, Metro, Walmart Canada, and Giant Tiger. The plaintiffs claimed these companies participated in a 14-year price-fixing conspiracy from 2001 to 2015, causing an artificial increase in bread prices.
The Competition Bureau began investigating the alleged scheme in January 2016. Weston Foods and Loblaw, then subsidiaries of George Weston, admitted to an “industry-wide price-fixing arrangement” and received immunity for cooperating.
Court documents from 2018 revealed that the scheme added at least $1.50 to the price of a loaf of bread. In June 2023, Canada Bread was fined $50m after pleading guilty to four counts of price-fixing, marking the highest fine ever imposed for price-fixing by a Canadian court.
In their defence, Canada Bread denied any broad conspiracy to fix bread prices or profiting from such actions. Metro, in its defence and crossclaim, accused Loblaw and George Weston of implicating it in the conspiracy.
Sobeys also denied involvement and filed a crossclaim. Walmart Canada and Giant Tiger both denied participating in or being aware of the conspiracy.
