Canadians have until Friday to file claims for a share of a $500 million settlement related to alleged price-fixing of bread. This class-action lawsuit claims that multiple companies engaged in an industry-wide conspiracy to artificially inflate bread prices.
Key Details of the Settlement
The settlement, which originated from a lawsuit filed last year, includes $404 million payable by Loblaw and its parent, George Weston Ltd. The remainder of the settlement, $96 million, is being offered through a gift card program that Loblaw introduced in 2017.
Eligibility and Compensation
Eligible residents must have purchased packaged bread for personal use between January 1, 2001, and December 31, 2021. They are required to submit their claims online by December 12. The types of bread covered include:
- Bagged bread
- Buns
- Rolls
- Bagels
- Naan
- English muffins
- Wraps
- Pitas
- Tortillas
Claimants do not need proof of purchase. Those who qualify and have not previously received a gift card from Loblaw may receive up to $25 in compensation.
Claim Submission Process
For residents outside Quebec, claims can be submitted through the Canadian Bread Settlement website. Those living in Quebec should use the Quebec Bread Settlement site to file their claims.
Claims processing may take time, usually between six to twelve months after the submission deadline. The settlement administrator will determine eligibility and the compensation amount for approved claims.
Background on the Allegations
This lawsuit arose from allegations of a price-fixing conspiracy that took place from 2001 to 2015. The Competition Bureau began investigating in January 2016. The lawsuit accuses several major grocery chains, including Loblaw, Metro, and Walmart Canada, of artificially raising bread prices.
As part of the investigation, Loblaw and Weston Foods, both under George Weston, acknowledged their role in the price-fixing and received immunity in return for cooperation. The Competition Bureau indicated that prices rose by at least $1.50 per loaf due to these practices, and fines have been imposed for violations. Notably, Canada Bread received a $50 million fine in June 2023 for its part in the scheme, marking the highest price-fixing penalty given by a Canadian court.
As the claim deadline approaches, affected Canadians are encouraged to take action to ensure they don’t miss out on compensation.
