Loblaw Cos. Ltd. and its parent company George Weston Ltd. have reached a settlement in a pair of class-action lawsuits related to allegations of an industry-wide price-fixing conspiracy involving packaged bread in Canada.
The $500 million settlement was announced in 2024, and while it was officially executed on January 31, 2025, it is still subject to approval by courts in Ontario and Quebec. This settlement marks a significant step in resolving a major legal battle that has been ongoing for several years.
As part of the settlement, Loblaw and George Weston will contribute a combined total of $404 million in financial compensation. The remaining $96 million will come from Loblaw’s gift card program, which was introduced in 2017. The settlement funds will be distributed to class-action members, with 22% of the total allocated to eligible individuals in Quebec, and the remainder to those outside of Quebec.
This legal matter stems from allegations that Loblaw and other major companies were involved in a price-fixing scheme that inflated the cost of packaged bread in Canada for over a decade. The class-action lawsuits claim that the conspiracy resulted in at least $1.50 being added to the price of a loaf of bread between 2001 and 2021.
Remaining Defendants and Continuing Legal Actions
While Loblaw and George Weston have settled, several other defendants are still embroiled in the ongoing class-action litigation. These include Canada Bread, Sobeys, Metro, Walmart Canada, and Giant Tiger. The settlement agreement will also provide access to key information that may aid in continuing legal actions against these remaining companies.
Loblaw and George Weston were the first to admit their participation in the alleged price-fixing conspiracy, which they did as part of an investigation by the Competition Bureau of Canada. As a result of their cooperation, both companies were granted immunity from further penalties under the Bureau’s investigation. In contrast, Canada Bread has pleaded guilty to four counts of price-fixing, although it denies involvement in a broader conspiracy.
Accusations and Denials from Metro and Sobeys
In a twist to the ongoing saga, Metro and Sobeys have accused Loblaw and George Weston of conspiring to implicate them in the price-fixing scheme. These companies have vehemently denied the allegations, which has added another layer of complexity to the legal proceedings. The lawsuits, alongside the Competition Bureau’s investigation, continue to unfold, with more developments expected in the coming months.
The investigation by the Competition Bureau began in January 2016, when the Bureau first raised concerns about possible price-fixing among major bread manufacturers and retailers. According to the Bureau, a secret 14-year conspiracy led to inflated bread prices, affecting millions of Canadians.
The impact of the alleged price-fixing scheme was significant. The Competition Bureau claims that as a result of the conspiracy, Canadians paid over $1.50 more per loaf of bread than they would have in a competitive market. This increase in bread prices had a ripple effect, raising the cost of living for many households.
How the Settlement Affects Consumers
Canadians who purchased packaged bread between January 1, 2001, and December 31, 2021, are eligible to participate in the class-action settlement. Those who made bread purchases in Quebec will automatically be included in the Quebec class action, while individuals outside of Quebec will be included in the Ontario class action.
For eligible individuals, the funds from the settlement will be distributed based on a proportional formula, with 22% allocated to Quebec class members and the rest to those outside the province. The distribution process is expected to be completed once the court provides approval, which is expected later in 2025.
Class members in both Ontario and Quebec must be aware of the deadlines for opting out of the settlement. The deadline for opting out of the Quebec class-action settlement is May 30, 2025. Meanwhile, those in Ontario must submit their opt-out requests by April 25, 2025. Additionally, individuals wishing to object to or comment on the settlement must do so by May 30, 2025.
