Competition Bureau investigating if grocery deals are being ‘kept’ from Canadians

The Competition Bureau has launched an investigation into the use of minimum advertised pricing policies in the grocery sector.

These policies, which can be imposed by suppliers or negotiated between suppliers and retailers, set the lowest price at which a retailer can advertise a product.

The bureau said these policies can prevent retailers from advertising lower prices, even when they are prepared to offer those prices in-store.

Some retailers may also remove in-store discounts entirely if they cannot advertise lower prices under these policies.

The bureau said it is examining whether these policies make it harder for Canadians to find deals, reduce price competition, create barriers for discount and new grocers, and make it easier for grocers to coordinate the prices they charge.

A call for information was published Monday (Sept. 28). The agency is seeking to hear from consumers, retailers, suppliers and others. 

“Canadians expect grocery stores to be able to advertise their best deals. We’re concerned that policies that prevent this make it harder for grocers to compete, and for consumers to access lower prices. At a time when food affordability remains an important concern for Canadians, we want to hear about how these policies are affecting grocery prices and consumer choice,” said Jeanne Pratt, interim commissioner of competition, in a statement. 

The information will support the bureau’s investigation in the sector, as well as inform its examination of competition across Canada’s food supply chain.

Launched in June, the agency’s food supply chain investigation aims to understand whether more competition in Canada’s food supply chain could keep food prices in check.

The bureau is looking for potential competition issues in three key areas: production and processing; transportation and distribution; and retail pricing practices, including loyalty programs, pricing algorithms, shrinkflation and skimpflation.

It plans to publish a report summarizing its findings and recommendations to policymakers.

In 2023, the Competition Bureau conducted a study on Canada’s retail grocery market, sharing recommendations to improve competition in a report.

Among the recommendations was for provincial and territorial governments to consider introducing accessible and harmonized unit pricing requirements. 

This story was published on Sept. 25 and updated Sept. 28.