A lawsuit from the Great White North Franchisee Association USA Inc says U.S. Tim Hortons franchisees were charged as much as 50 per cent above what competitors pay for supplies like coffee, baking goods, meat and paper products.

The company said Thursday it cannot comment on the specifics of the ongoing legal matter, but added the allegations "are completely false."

The government's response is in regards to a list of grievances outlined in a letter from the Great White North Franchise Association, which represents about half of Canadian Tims franchisees.