The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry. These policies restrict retailers from promoting their lowest prices, potentially hindering Canadians’ ability to find cost-saving deals and diminishing price competition. The investigation aims to determine whether these policies impede new and discount grocers’ entry into the market, as well as facilitate price coordination among grocery stores.
Jeanne Pratt, the interim competition commissioner, emphasized the importance of grocery stores being able to showcase their best deals to consumers. She expressed concerns that these policies could stifle competition among grocers and limit consumer access to lower prices, particularly at a time when food affordability is a pressing issue for Canadians.
Minimum advertised pricing policies establish a minimum price threshold for products that retailers can advertise, although they may still sell the products at a lower price. These rules are often utilized by suppliers to uphold a brand’s reputation, incentivize retailers to offer superior service, and prevent certain retailers from capitalizing on the promotional efforts of others.
The Competition Bureau is urging industry stakeholders and consumers to provide evidence regarding the use of minimum pricing policies. The information gathered will support the ongoing investigation and aid in evaluating competition within Canada’s food supply chain.
Earlier in June, the bureau commenced an inquiry into competition dynamics within the grocery sector, focusing on potential issues in production, processing, transportation, distribution, and pricing.
