The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry, regulations that restrict retailers from promoting their lowest prices openly. The investigation aims to determine whether these policies impede Canadians from accessing discounts, diminish price competition, 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 top deals. She expressed concerns that policies restricting this practice hinder grocers’ competitiveness and consumer access to reduced prices, particularly during a period when food affordability is a pressing issue for Canadians.
Minimum advertised pricing policies establish a price floor for products that retailers can advertise, though they may still sell the products for less. These regulations are commonly used by suppliers in the retail sector to uphold a brand’s reputation, prompt retailers to offer enhanced services, 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 utilization of minimum pricing strategies. The information gathered will aid in the investigation and shape the analysis of competition within Canada’s food supply chain.
Earlier in June, the bureau launched an inquiry into competition within the grocery sector, focusing on potential challenges in production, processing, transportation, distribution, and pricing.