Thunder Bay Consumers to Benefit from Historic Settlement
Canada’s largest grocer, Loblaw Cos. Ltd., and parent company George Weston Ltd. have agreed to pay $500 million to settle class-action lawsuits for bread price-fixing from 2001 to 2015.
Canada’s biggest grocery chain, Loblaw Cos. Ltd., and its parent company, George Weston Ltd., have reached a $500-million settlement in two class-action lawsuits regarding a bread price-fixing scheme. The lawsuits alleged that from 2001 to 2015, the companies conspired to fix bread prices, significantly impacting consumers across Canada.
Public Acknowledgement and Legal Immunity
In 2017, both companies publicly admitted their involvement in the price-fixing scheme after reporting an “industry-wide” conspiracy to the Competition Bureau in 2015. This disclosure granted them immunity from criminal charges and prompted an ongoing investigation by the federal watchdog.
Settlement Details
On Thursday, the settlement was announced, with Loblaw agreeing to pay $156.5 million in cash and George Weston contributing $247.5 million in cash. Additionally, the settlement includes $96 million previously paid out by Loblaw in the form of $25 gift cards to customers in 2018 as compensation.
Legal Process and Consumer Impact
The mediation process, overseen by Geoffrey Morawetz, Chief Justice of the Ontario Superior Court of Justice, saw lawyers representing plaintiffs in Ontario and Quebec reach an agreement. The Ontario lawsuit alleged that grocery retailers and bread makers had overcharged consumers by approximately $5 billion over 16 years due to price manipulation.
Local Relevance
This settlement has significant implications for consumers in Thunder Bay and across Northwestern Ontario. Residents who purchased bread from Loblaw owned stores during the affected period could benefit from the settlement, highlighting the broader impact of corporate practices on local communities.
