Class action authorized against alleged nationwide cartel that fixed bread prices

Class action lawsuit authorized against a group of food retailers and bread producers

Class action authorized against alleged nationwide cartel that fixed bread prices

Karim Renno says his recently authorized class action lawsuit against major food retailers and producers accused of fixing the price of bread across Canada is special, because a key player has already admitted to it.

Price-fixing is notoriously difficult to prove in court, the lawyer said in an interview Friday, but in this case, Loblaw Companies and Canada’s Competition Bureau have done a lot of the work.

“What’s extraordinary here is not just the investigation by the Competition Bureau,” Renno said, but we also have affidavits and the evidence. We have specific information from (Loblaw), who said ‘this is how it worked.’ “

On Thursday, Quebec Superior Court Justice Pierre Gagnon authorized a class action lawsuit against a group of food retailers and bread producers, for allegedly having colluded together to fix the price of bread across Canada since 2001.

The lawsuit involves any person, association or partnership residing in Quebec, who bought packaged bread from the defendants, between Jan. 1, 2001 and Dec. 19, 2019 — the date the suit was authorized in court.

Loblaw and its parent company, George Weston Ltd., as well as Metro Inc., Empire Company Ltd. subsidiary Sobeys Inc., Walmart, Giant Tiger Stores Ltd. and Canada Bread Company Ltd., are listed as defendants.

Marie-Claude Bacon, spokeswoman for Metro, said in an email, the company “does not believe that it, or any of its employees, have contravened the Competition Act.

“The authorization judgment is a purely procedural step that does not decide the merits of the case. The company intends to contest this class action on the substantive since it believes it is unfounded.”

Giant Tiger said it has no reason to believe the company or any employees violated the Competition Act.

“We have and will continue to co-operate fully with the Competition Bureau and look forward to seeing the results of the complete investigation,” said Alison Scarlett, director of brand communications in an email.

Jason Patuano, director of communications for Sobeys, said the company sees “no evidence” of any Sobeys involvement. ”We reiterate, yet again, that we have seen absolutely no indication that Sobeys contravened competition law,” he wrote in an email.

Attempts to reach the other defendants for comment were unsuccessful.

The lawsuit, and the green light given to it earlier in the week, were widely expected because Loblaw had come forward in 2015 to the Competition Bureau and admitted to taking part in the scheme. The company also named its alleged accomplices, who are listed as defendants in the case, Renno said.

In 2017, George Weston Ltd. and Loblaw released a statement saying: “The arrangement involved the co-ordination of retail and wholesale prices of certain packaged bread products over a period extending from late 2001 to March 2015. Under the arrangement, the participants regularly increased prices on a co-ordinated basis.”

According to federal law, companies that admit wrongdoing and co-operate with the Competition Bureau are granted immunity from criminal charges or penalties — but they are still liable in civil court.

Renno said evidence from the Competition Bureau’s investigation includes email exchanges and testimony from some of the defendants that demonstrate a co-ordinated plan to raise the price of bread by seven to 10 cents a year.

“We see this in the emails,” Renno said. “We also read how some of (the defendants) complained about another one who wasn’t respecting the deal. They said: ‘I saw the flyer of this store, what’s the story here? How are they not respecting what we agreed to?’ “

The Canadian Press has not been able to verify or review the Competition Bureau’s evidence. Marcus Callaghan, spokesman the bureau, said in an email it is “investigating alleged anti-competitive agreements between competitors — including Canada Bread, Weston Bakeries, Loblaw, Walmart, Sobeys, Metro, and Giant Tiger — to fix the wholesale and retail price of fresh commercial bread in Canada.

“The investigation is ongoing. There is no conclusion of wrongdoing at this time, and no charges have been laid.”

Renno said the alleged price-fixing scheme occurred across the country but his lawsuit is only open to Quebec residents, companies or associations. He said he believes the damages are in the billions of dollars.

Loblaw and George Weston have stated that they discovered the wrongdoing in 2015 and that the employees responsible are no longer employed by them.

Giuseppe Valiante, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP are searching for Philip Toner, who is a ‘person of interest’ in the investigation of a suspicious death in Kootenay National Park last week. Photo courtesy BC RCMP.
RCMP identify ‘person of interest’ in Kootenay National Park suspicious death

Police are looking for Philip Toner, who was known to a woman found dead near Radium last week

The southern mountain caribou, an iconic species for the Splatsin First Nation, is threatened with extinction, much to the dismay of the First Nation. (Province of B.C. photo)
Splatsin First Nation concerned over dwindling caribou herd

Southern mountain caribou at risk of extinction, will struggle to recover without habitat protection and restoration action - report

FILE - In this April 19, 2021, file photo, Keidy Ventura, 17, receives her first dose of the Pfizer COVID-19 vaccine in West New York, N.J. States across the country are dramatically scaling back their COVID-19 vaccine orders as interest in the shots wanes, putting the goal of herd immunity further out of reach. (AP Photo/Seth Wenig, File)
5 more deaths, 131 new cases of COVID-19 in Interior Health over the weekend

Those 18-years and older in high-transmission neighbourhoods can register for the vaccine

Five-year-old Bayne Krause poses for a photo with his mom Marianne. Bayne’s shirt reads, ‘I have Cystic Fibrosis. Help keep me healthy, please social distance.’ Photo: Laurie Tritschler
West Kootenay mom promotes awareness of cystic fibrosis

Marianne Krause wants people to know what it’s like for her five-year-old son to live with CF

A rolled-over semi along Highway 95. The RCMP have responded to nine collisions in the last month. (Brain Duchovnay photo)
Golden/Field RCMP recap last two months

The RCMP responded to 463 calls to service over the last two months

Sisters Audrey Cunningham and Donna Erdman, join the Vernon Kalamalka Chorus singing in their cars, tuned into the radio, under the direction of Debbie Parmenter. (Jennifer Smith - Morning Star)
VIDEO: Okanagan choir steers around COVID with ‘carbershop’ twist

Singers find a unique way to practice during pandemic restrictions

The collision occurred in Rossland on Monday just before noon. Photo: RCMP
Rossland man dies after being pinned between 2 vehicles

The man succumbed to his injuries in Kootenay Boundary Regional Hospital

Kelowna City Hall. (Michael Rodriguez/Capital News)
Planning staff want Kelowna council to weigh in earlier on ‘complex’ proposals

Currently, all proposals go through the same process, whether its a carriage home or a 40-storey tower

David and Julie Kaplan with their children Estelle and Justin. (Special to The News)
COVID-19 border closure stops B.C. family’s cross-country move

Maple Ridge couple, two kids, turned away at New Brunswick border

The majority of city council votes in favour of this design for a new Salmon Arm flag on Monday, May 10, 2021. (City of Salmon Arm image)
Majority of council salutes new flag for Salmon Arm

Two councillors raise concerns about logo being too corporate for a flag

Kelowna RCMP precinct. (Michael Rodriguez - Capital News)
Kelowna RCMP reviewing rough arrest after video shared on social media

The video shows an officer punching a man while arresting him for allegedly driving a stolen car

Penticton Search and Rescue had to deploy its helicopter and high angle rescue team to evacuate an injured climber out of Skaha Bluffs Monday. (Mike Biden photo)
Injured climber helicoptered to rescue at Penticton’s Skaha Bluffs

This is the 7th rescue in a week for Penticton’s Search and Rescue

A statement posted at the front doors of Kelowna’s Taco Time, informing customers that the business is closing on May 11. (Aaron Hemens/Capital News)
Final Taco Tuesday for Kelowna’s Taco Time

After 40 years of tacos, the fast-food restaurant has had its lease terminated and is shuttering its doors for good

Most Read