The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry. These policies restrict retailers from promoting their lowest prices, potentially impacting consumers’ ability to find cost-effective deals and hindering price competition. Additionally, they could create obstacles for discount and new grocers while facilitating price coordination among grocery stores.

Jeanne Pratt, the agency’s interim competition commissioner, emphasized the importance of grocery stores being able to showcase their best deals to Canadians. Concerns have been raised that such policies may impede grocers’ competitiveness and limit consumers’ access to lower prices, especially during a time when food affordability is a key issue.

Minimum advertised pricing policies establish a minimum price at which retailers can advertise a product, though they may still sell it for a lower price. These rules are often utilized by suppliers in the retail sector to safeguard a brand’s reputation, incentivize better service from retailers, and prevent certain retailers from benefiting unfairly from others’ promotional efforts.

The Competition Bureau is urging industry stakeholders and consumers to provide evidence regarding the use of minimum pricing. The information gathered will support the ongoing investigation and help assess competition within Canada’s food supply chain. In a separate initiative in June, the bureau began investigating competition within the grocery sector, focusing on potential issues in production, processing, transportation, distribution, and pricing.