Loblaw, George Weston to pay $500M for bread price-fixing scheme in record
Loblaw Cos. Ltd. and its parent company George Weston Ltd. say they have agreed to pay $500 million to settle a class-action lawsuit regarding their involvement in a bread price-fixing scheme.
The class-action case was brought against a group of companies that includes Loblaw and the Weston companies, Metro, Walmart Canada, Giant Tiger, and Sobeys and its owner Empire Co. Ltd.
The plaintiffs allege those companies participated in a 14-year industry-wide price-fixing conspiracy between 2001 and 2015, leading to an artificial increase in packaged bread prices.
George Weston will pay $247.5 million in cash, while Loblaw will pay $252.5 million, made up of $156.5 million in cash and credit for $96 million previously paid to customers by Loblaw under the Loblaw Card program.
Loblaw chairman Galen Weston, who is also chairman and chief executive of George Weston, apologized on behalf of the companies.
“This behaviour should never have happened,” said Weston. “We have the privilege of serving Canadians from coast to coast. That privilege needs to be earned each and every day. Reaching a settlement on this matter was the right thing to do in response to previous behaviour that did not meet our values and ethical standards.”
Lawyers representing the plaintiffs say the payout, subject to court approval, is the largest antitrust settlement in Canadian history.
WATCH l Canada Bread fine announced, June 2023:
The company that provides bread to millions of Canadians under brands like Dempsters has been handed the largest price-fixing fine ever: $50 million. The company pleaded guilty following an investigation by the Competition Bureau.
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