Class action authorized against alleged nationwide cartel that fixed bread prices

Class action lawsuit authorized against a group of food retailers and bread producers

Class action authorized against alleged nationwide cartel that fixed bread prices

Karim Renno says his recently authorized class action lawsuit against major food retailers and producers accused of fixing the price of bread across Canada is special, because a key player has already admitted to it.

Price-fixing is notoriously difficult to prove in court, the lawyer said in an interview Friday, but in this case, Loblaw Companies and Canada’s Competition Bureau have done a lot of the work.

“What’s extraordinary here is not just the investigation by the Competition Bureau,” Renno said, but we also have affidavits and the evidence. We have specific information from (Loblaw), who said ‘this is how it worked.’ “

On Thursday, Quebec Superior Court Justice Pierre Gagnon authorized a class action lawsuit against a group of food retailers and bread producers, for allegedly having colluded together to fix the price of bread across Canada since 2001.

The lawsuit involves any person, association or partnership residing in Quebec, who bought packaged bread from the defendants, between Jan. 1, 2001 and Dec. 19, 2019 — the date the suit was authorized in court.

Loblaw and its parent company, George Weston Ltd., as well as Metro Inc., Empire Company Ltd. subsidiary Sobeys Inc., Walmart, Giant Tiger Stores Ltd. and Canada Bread Company Ltd., are listed as defendants.

Marie-Claude Bacon, spokeswoman for Metro, said in an email, the company “does not believe that it, or any of its employees, have contravened the Competition Act.

“The authorization judgment is a purely procedural step that does not decide the merits of the case. The company intends to contest this class action on the substantive since it believes it is unfounded.”

Giant Tiger said it has no reason to believe the company or any employees violated the Competition Act.

“We have and will continue to co-operate fully with the Competition Bureau and look forward to seeing the results of the complete investigation,” said Alison Scarlett, director of brand communications in an email.

Jason Patuano, director of communications for Sobeys, said the company sees “no evidence” of any Sobeys involvement. ”We reiterate, yet again, that we have seen absolutely no indication that Sobeys contravened competition law,” he wrote in an email.

Attempts to reach the other defendants for comment were unsuccessful.

The lawsuit, and the green light given to it earlier in the week, were widely expected because Loblaw had come forward in 2015 to the Competition Bureau and admitted to taking part in the scheme. The company also named its alleged accomplices, who are listed as defendants in the case, Renno said.

In 2017, George Weston Ltd. and Loblaw released a statement saying: “The arrangement involved the co-ordination of retail and wholesale prices of certain packaged bread products over a period extending from late 2001 to March 2015. Under the arrangement, the participants regularly increased prices on a co-ordinated basis.”

According to federal law, companies that admit wrongdoing and co-operate with the Competition Bureau are granted immunity from criminal charges or penalties — but they are still liable in civil court.

Renno said evidence from the Competition Bureau’s investigation includes email exchanges and testimony from some of the defendants that demonstrate a co-ordinated plan to raise the price of bread by seven to 10 cents a year.

“We see this in the emails,” Renno said. “We also read how some of (the defendants) complained about another one who wasn’t respecting the deal. They said: ‘I saw the flyer of this store, what’s the story here? How are they not respecting what we agreed to?’ “

The Canadian Press has not been able to verify or review the Competition Bureau’s evidence. Marcus Callaghan, spokesman the bureau, said in an email it is “investigating alleged anti-competitive agreements between competitors — including Canada Bread, Weston Bakeries, Loblaw, Walmart, Sobeys, Metro, and Giant Tiger — to fix the wholesale and retail price of fresh commercial bread in Canada.

“The investigation is ongoing. There is no conclusion of wrongdoing at this time, and no charges have been laid.”

Renno said the alleged price-fixing scheme occurred across the country but his lawsuit is only open to Quebec residents, companies or associations. He said he believes the damages are in the billions of dollars.

Loblaw and George Weston have stated that they discovered the wrongdoing in 2015 and that the employees responsible are no longer employed by them.

Giuseppe Valiante, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Last week warming temperatures were a concern for Avalanche Canada forecasters, and those trends likely contributed to an avalanche that killed a West Kootenay snowmobiler on Thursday, March 4. Jen Coulter file photo.
Warming trend that concerned Avalanche Canada contributed to Kaslo fatality

Concern for persistent layers has reduced since then

Police chief Paul Burkart (left) celebrated his retirement on the weekend with a dip in Kootenay Lake. Nelson fire chief Len McCharles and Deb Morris of BC Ambulance Services, seen here on the dock, also took the plunge. The event was a fundraiser for the BC Special Olympics. Photo: Bill Metcalfe
Nelson’s police chief, emergency workers take a cold dip for a good cause

Cold in the Koots raises $11,000 for BC Special Olympics

A West Kootenay man died in an avalanche on March 4 while snowmobiling near Mount Payne, which is indicted by the red flag. Illustration: Google Maps
Father of 3 dead after avalanche in West Kootenay

The man was snowmobiling with a group when incident occurred March 4

Const. Allan Young. Photo: Abbotsford Police Department
Manslaughter charge laid in Nelson death of Abbotsford police officer

Allan Young died after an incident in downtown Nelson last summer

Forty-seven vaccination clinics will open across Interior Health beginning March 15. (Canadian Press)
48 COVID-19 vaccine clinics to open across Interior Health

Select groups can book appointments starting Monday

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(Black Press Media files)
Hosts charged, attendees facing COVID fines after Vancouver police bust party at condo

Police had previously received 10 complains about that condo

Minister of Families, Children and Social Development Ahmed Hussen takes part in an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. A joint federal and B.C. government housing program announced today aims to help people living in up to 25,000 vulnerable households pay their rent. THE CANADIAN PRESS/Sean Kilpatrick
Federal, B.C. governments announce $517-million rent aid program to help vulnerable

Benefits for those not eligible for B.C.’s Rental Assistance Program or Shelter Aid for Elderly Renters

(BC SPCA)
Is it safe to give your dog some peanut butter? Not always, BC SPCA warns

Some commercial peanut butter ingredients can be harmful to dogs

Health Minister Adrian Dix, front, B.C. Premier John Horgan and provincial health officer Dr. Bonnie Henry arrive for a news conference about the provincial response to the coronavirus, in Vancouver, B.C., Friday, March 6, 2020. Pandemic emergency measures have been in place for almost a year. THE CANADIAN PRESS/Darryl Dyck
B.C. officials plead for patience as 1.7 million COVID-19 calls flood in

Vaccine registration for 90-plus seniors opened Monday

A health-care worker prepares a dose of the Pfizer-BioNTech COVID-19 vaccine at a UHN COVID-19 vaccine clinic in Toronto on Thursday, January 7, 2021. THE CANADIAN PRESS/Nathan Denette
Vaccine hesitancy decreases in B.C. as mass immunizations set to begin: poll

Two-thirds of British Columbians, and Canadians, would get the vaccine as soon as possible

Software engineer Shaimma Yehia, 40, has been forced to re-skill during the COVID-19 pandemic after more than six years of unsuccessfully applying for jobs in B.C.’s tech industry. (Submitted photo/Shaimma Yehia)
Why skilled immigrant women continue to be shut out of B.C.’s booming tech sector

Experienced software engineer Shaimma Yehia, 40, hasn’t found a job since she migrated to Canada 6 years ago

Ron Sivorot, business director at Kennametal’s Langford site, the Greater Victoria facility that made a component being used on NASA’s Perseverance rover on Mars. (Jake Romphf, Black Press Media)
NASA’s Perseverance Mars rover digging in with B.C.-made part

Kennametal’s Langford plant’s tooth blank is helping the rover’s drill collect rock cores

Most Read