Grupo Bimbo\u0027s Canada Bread has settled with the Competition Bureau over its role in the bread price\u002Dfixing scheme. Read on.
In a statement, Grupo Bimbo said it was unaware of the price-fixing scheme when it bought Canada Bread and has offered “material and consistent co-operation” to the Competition Bureau since learning about the alleged conduct in 2017. In addition, the company said it is considering “all legal options against those responsible for the conduct” addressed in the court proceedings.
“We are pleased to have resolved this matter, and we look forward to building upon our investments in Canada,” said Alice Lee, vice president of Canada Bread.In 2015, Loblaw Cos. Ltd. and parent company George Weston Ltd.
The alleged industry-wide co-ordinated price setting became public in 2017 and, in early 2018, the bureau filed documents in court alleging that at least $1.50 had been artificially baked in to the price of a loaf of bread between 2001 and 2016 as a result of the co-ordinated scheme, which regulators said may have extended into 2017.
In exchange for co-operation with the Competition Bureau, Loblaw and Weston received immunity from prosecution and, as a goodwill gesture intended to appease customers, the grocery chain offered $25 gift cards in 2018 to anyone who may have bought bread at inflated prices. At the time, legal observers questioned whether the courts would allow Loblaw and Weston to escape some financial liability in multiple class action lawsuits that were filed as a result of the issuance of gift cards. It was estimated the gift cards would cost Loblaw between $75 million and $150 million, depending on uptake by customers.Article content
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