The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry. These policies restrict retailers from promoting their lowest prices, potentially hindering Canadians’ ability to find cost-effective deals, curbing price competition, impeding new grocers from entering the market, and facilitating price coordination among grocers.
Jeanne Pratt, the agency’s interim competition commissioner, emphasized the importance of grocery stores being able to showcase their best bargains. She expressed concerns that such policies may hinder grocers’ competitiveness and limit consumers’ access to lower prices, particularly in light of ongoing concerns about food affordability in Canada.
Minimum advertised pricing policies establish a price floor for products that retailers can advertise, although they may still sell them for less. These rules are often used by suppliers in the retail sector to safeguard brand reputation, incentivize superior service from retailers, and prevent certain retailers from profiting from others’ promotional efforts.
The Competition Bureau is calling on industry stakeholders and consumers to provide evidence regarding the use of minimum pricing policies. This information will support the ongoing investigation and help assess competition within Canada’s food supply chain.
Earlier this year, the bureau launched a comprehensive inquiry into competition within the grocery sector, examining potential issues in production, processing, transportation, distribution, and pricing practices.
