Competition Bureau investigates minimum advertised pricing policies in grocery sector

The Competition Bureau is investigating the use of minimum advertised pricing policies in the Canadian grocery sector, according to a statement from interim competition commissioner Jeanne Pratt. These policies, which set a minimum price for retailers to advertise a product, can prevent stores from promoting their lowest prices.

Pratt expressed concern that such restrictions make it difficult for consumers to access lower prices and for grocers to compete with one another. The investigation aims to determine if these policies reduce price competition, create barriers for discount and new grocery retailers, and facilitate price coordination among grocery stores.

Canadians expect grocery stores to be able to advertise their best deals, Pratt said, adding that the bureau wants feedback from industry participants and consumers regarding the impact of these policies on grocery prices and consumer choice. Minimum advertised pricing policies allow retailers to sell products below the set price, but the bureau is requesting evidence of their use in the retail industry.

The investigation is part of a broader probe into competition in Canada's food supply chain, which began in June and covers production, processing, transportation, distribution, and pricing.