December 20, 2017 1:59 pm
Updated: December 20, 2017 2:06 pm

BUSINESS REPORT: Loblaw admits to bread price-fixing for 14 years

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Loblaw’s Canada parent George Weston Ltd. willingly came forward to admit it was involved in a bread price-fixing scheme that started in 2001 and lasted until 2015.

This took place under their own Loblaw banner and in company-owned Real Canadian Superstore, No Frills and Provigo.

The inquiry was held by the Competition Bureau, it also included Sobey’s – parent company of Canada Safeway – and Wal-Mart, who both cooperated with investigators. But it was Loblaw who admitted to a price-fixing scheme.

Loblaw has agreed to reimburse consumers who were affected with a $25 gift card starting in the New Year, with registration beginning on Jan. 8.

Loblaw expects between 3 to 6 million people to register and could cost the company a one-time write-down of $150 million.

Because Loblaw came forward voluntarily, no formal criminal charges will be laid.

© 2017 Global News, a division of Corus Entertainment Inc.

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