The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry, which are regulations that restrict retailers from promoting their lowest prices. The investigation aims to determine if these policies impede Canadians from discovering discounts, diminish price rivalry, create obstacles for discount and emerging grocers, and facilitate price coordination among grocers.
Jeanne Pratt, the agency’s interim competition commissioner, emphasized the significance of grocery stores being able to showcase their top deals. She expressed concerns that such policies may hinder grocers’ ability to compete and limit consumer access to lower prices, especially during a period when food affordability is a pressing issue for Canadians.
Minimum advertised pricing policies establish a pricing threshold for retailers to advertise a product, although they may still sell it for less. These policies are commonly used by suppliers in the retail sector to safeguard a brand’s reputation, incentivize better service from retailers, and prevent certain retailers from capitalizing on the marketing efforts of others.
The Competition Bureau is urging industry stakeholders and consumers to provide evidence regarding the utilization 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 bureau commenced an inquiry into competition within the grocery industry, examining potential issues related to production, processing, transportation, distribution, and pricing.
