The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies in the grocery industry. These regulations restrict retailers from promoting their lowest prices, potentially hindering consumers from accessing discounts and impeding price competition. The investigation aims to assess if these policies create obstacles for new and discount grocers while facilitating price coordination among existing grocers.
Jeanne Pratt, the interim competition commissioner at the agency, emphasized the importance of grocery stores being able to advertise their best deals. She expressed concerns that these policies could limit competition among grocers and limit consumer access to lower prices, particularly in light of ongoing concerns about food affordability.
Minimum advertised pricing policies establish a baseline for the price at which retailers can advertise a product, although they may still sell it for less. Suppliers in the retail sector often use these rules to safeguard a brand’s reputation, incentivize better service from retailers, or prevent certain retailers from capitalizing on the marketing efforts of others.
The Competition Bureau is encouraging industry stakeholders and consumers to provide evidence regarding the use of minimum pricing. This information will support the ongoing investigation and help in evaluating competition within Canada’s food supply chain. Earlier this year, the bureau also launched an inquiry into various aspects of competition in the grocery sector, encompassing production, processing, transportation, distribution, and pricing dynamics.