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 discounted offers, diminishing price competition, erecting barriers for new and discount grocers, and facilitating price coordination among grocers.
Jeanne Pratt, the interim competition commissioner, emphasized that Canadians anticipate grocery stores to showcase their best deals. Concerns arise regarding the impact of these policies on competition among grocers and consumers’ access to lower prices, especially amidst ongoing concerns about food affordability in Canada.
Minimum advertised pricing policies establish a price floor for products that retailers can advertise, although they may still offer them at a lower price. In the retail sector, suppliers may utilize these rules to safeguard a brand’s reputation, incentivize better service from retailers, or prevent certain retailers from capitalizing on others’ promotional efforts.
The Competition Bureau is urging industry stakeholders and consumers to provide evidence regarding the use of minimum pricing. This feedback will bolster the ongoing investigation and aid in assessing competition within Canada’s food supply chain.
Earlier in June, the bureau had launched an inquiry into competition within the grocery sector, focusing on potential issues in production, processing, transportation, distribution, and pricing practices.