The Competition Bureau has initiated a probe into the utilization of minimum advertised pricing strategies within the grocery industry, which are regulations that restrict retailers from promoting their lowest prices openly. This investigation aims to assess whether such policies hinder Canadians from accessing discounts, diminish price competitiveness, create obstacles for discount and emerging grocers, and facilitate price coordination among grocers.
Jeanne Pratt, the interim competition commissioner of the agency, emphasized the importance of grocery stores being able to showcase their best deals. She expressed concerns that policies limiting this ability can impede grocers’ competitiveness and consumers’ access to lower prices, especially at a time when food affordability is a significant issue for Canadians.
Minimum advertised pricing policies establish a baseline for the price at which retailers can advertise a product, although they may still be permitted to sell it at a lower price. These rules are often utilized by suppliers in the retail sector to safeguard a brand’s reputation, incentivize retailers to offer superior service, or 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 implementation of minimum pricing practices. The information gathered will support the ongoing investigation and aid in evaluating competition within Canada’s food supply chain.
Earlier in June, the agency initiated an inquiry into competition within the grocery industry, examining potential issues related to production, processing, transportation, distribution, and pricing.
