Walmart Canada and Loblaw — sandwiching five other large Canadian retailers — have been named as defendants for an alleged $5 billion bread price-fixing scheme..Records gathered over two years by federal anti-trust investigators detailing the scope of the alleged scheme have now been unsealed by an Ontario judge, said Blacklock’s Reporter..“The conspiracy at issue in this proposed class action is alleged to have gone for some 16 years,” wrote Justice Edward Morgan of Ontario Superior Court..“The plaintiffs claim it was massive in scale involving the wholesale and retail sale of one of Canada’s most widely consumed staple products, packaged bread.”.Seven companies have been accused of manipulating the $40 billion bread market “to accrue somewhere in the range of $5 billion in ill-gotten gains,” wrote the court..According to court documents, the secret probe was launched by the federal Competition Bureau in 2015..In a 2017 statement, Loblaw Companies and Weston Bakeries admitted to their role “in an industry-wide coordination of retail and wholesale prices of certain packaged bread products over a period extending from late 2001 to March 2015.”.Loblaw conceded to the breach and offered shoppers a total of $150 million in compensation through individual $25 gift cards..Findings from the investigation alleged from November 2001 rival companies secretly arranged to increase bread prices at least 15 times “via direct communications between senior officers and executives.”.Investigators claimed profits from the price-fixing scheme were shared in a 70-30 split between bakers and retailers respectively..The Competition Bureau alleged from November 2001 management with rival companies secretly arranged to increase bread prices at least 15 times “via direct communications between senior officers and executives.”.Including Walmart Canada and Loblaw, the other companies named in the class action lawsuit are Canada Bread Company, George Weston Ltd., Giant Tiger Stores Limited, Metro Inc., and Sobeys Inc..“I hasten to add here that none of the Competition Bureau’s investigative information has been proven in any judicial or administrative proceeding,” wrote Morgan..Morgan said the alleged conspiracy was far-reaching and could have affected “millions, or perhaps tens of millions of consumers,” from 2001 to 2015.“If consumers across Canada spend more on food they will eventually have less to spend on automobiles,” wrote Morgan..“In a complex market economy, there is literally no limit to the potential impact of a staple commodity whose price is fixed on non-market terms.”.“Economists have described conspiracies of this nature and size as having a reverberating, pernicious effect on the market economy with an even ‘greater adverse economic impact on society than theft and fraud,’” added the court..Melanie Risdon is a reporter with the Western Standard.,.mrisdon@westernstandardonline.com
Walmart Canada and Loblaw — sandwiching five other large Canadian retailers — have been named as defendants for an alleged $5 billion bread price-fixing scheme..Records gathered over two years by federal anti-trust investigators detailing the scope of the alleged scheme have now been unsealed by an Ontario judge, said Blacklock’s Reporter..“The conspiracy at issue in this proposed class action is alleged to have gone for some 16 years,” wrote Justice Edward Morgan of Ontario Superior Court..“The plaintiffs claim it was massive in scale involving the wholesale and retail sale of one of Canada’s most widely consumed staple products, packaged bread.”.Seven companies have been accused of manipulating the $40 billion bread market “to accrue somewhere in the range of $5 billion in ill-gotten gains,” wrote the court..According to court documents, the secret probe was launched by the federal Competition Bureau in 2015..In a 2017 statement, Loblaw Companies and Weston Bakeries admitted to their role “in an industry-wide coordination of retail and wholesale prices of certain packaged bread products over a period extending from late 2001 to March 2015.”.Loblaw conceded to the breach and offered shoppers a total of $150 million in compensation through individual $25 gift cards..Findings from the investigation alleged from November 2001 rival companies secretly arranged to increase bread prices at least 15 times “via direct communications between senior officers and executives.”.Investigators claimed profits from the price-fixing scheme were shared in a 70-30 split between bakers and retailers respectively..The Competition Bureau alleged from November 2001 management with rival companies secretly arranged to increase bread prices at least 15 times “via direct communications between senior officers and executives.”.Including Walmart Canada and Loblaw, the other companies named in the class action lawsuit are Canada Bread Company, George Weston Ltd., Giant Tiger Stores Limited, Metro Inc., and Sobeys Inc..“I hasten to add here that none of the Competition Bureau’s investigative information has been proven in any judicial or administrative proceeding,” wrote Morgan..Morgan said the alleged conspiracy was far-reaching and could have affected “millions, or perhaps tens of millions of consumers,” from 2001 to 2015.“If consumers across Canada spend more on food they will eventually have less to spend on automobiles,” wrote Morgan..“In a complex market economy, there is literally no limit to the potential impact of a staple commodity whose price is fixed on non-market terms.”.“Economists have described conspiracies of this nature and size as having a reverberating, pernicious effect on the market economy with an even ‘greater adverse economic impact on society than theft and fraud,’” added the court..Melanie Risdon is a reporter with the Western Standard.,.mrisdon@westernstandardonline.com
