In This Article:
People who bought packaged bread in Canada between 2001 and 2021 may be a step closer to receiving compensation for being overcharged as the “largest price-fixing settlement” in Canadian history makes its way to court next month to get approved.
As per the settlement, Loblaw Cos. Ltd. and George Weston Ltd. have agreed to pay $500 million to members of the class action. In exchange, class-action members will give a “full release” on claims against the companies in relation to the price-fixing saga.
The total that Loblaw will pay includes the $96 million it already offered in 2018 to customers through a $25 Loblaw card. How much extra people will get and when still has to be finalized by the court.
But if the settlement is approved by the court, 78 per cent of the settlement money after lawyers’ fees will be allocated to the Ontario class action and 22 per cent to the Quebec class action, according to documents filed in court.
“The settlement is hugely significant,” said Jay Strosberg, a managing partner at Strossberg Wingfield Sasso LLP, which is representing the plaintiffs. “It is the largest price-fixing settlement in Canadian history. It’s also one of the largest … that doesn’t involve the government of Canada. Canadians are going to receive direct compensation for something that took place a while ago, but that impacted everybody’s pocketbook.”
A notice sent this week by the law firm said the class action was authorized by the Ontario Superior Court of Justice and the Superior Court of Quebec. Though it didn’t offer much new information, the notice was required as part of the ongoing legal process.
“When you settle a case under the Class Proceedings Act, you have to go to the court and the court has to authorize the communication to the class to provide them sufficient notice of what’s been going on,” Strosberg said. “What you’re seeing is just a product of that process.”
The price-fixing scandal dates back to 2017, when the Competition Bureau said it was investigating an arrangement in which some companies regularly increased prices of bread products on a coordinated basis.
In July 2024, Loblaw and George Weston agreed to pay a total of $500 million to settle class-action lawsuits in Ontario and Quebec.
In exchange for their full cooperation with the Competition Bureau’s investigation, the two companies received immunity from prosecution.
During the course of its ongoing investigation, the Competition Bureau executed search warrants against Canada Bread Co. Ltd., Weston, Loblaw, Metro Inc., Sobeys Inc., Wal-Mart Canada Corp., Giant Tiger Stores Ltd., Overwaitea Food Group Ltd. and Maple Leaf Foods Inc.