NDP Leader Jagmeet Singh is advocating for harsh penalties for corporations involved in price-fixing, following the announcement that Loblaw Companies Limited and its parent company, George Weston Limited, will pay $500 million in fines for their role in a bread price-fixing scheme.
During a press conference on July 25, Mr. Singh criticized the current rules set by the Liberals and Conservatives, accusing them of allowing big corporations to take advantage of consumers. He emphasized the need for severe sanctions to deter such misconduct.
Loblaw Companies Ltd. and George Weston Ltd. revealed in a
statement that they agreed to pay $500 million to settle a class-action lawsuit related to their participation in a widespread bread price-fixing scheme. This scheme led to consumers being overcharged by $5 billion over 16 years in Canada.
Mr. Singh pointed out that the fines imposed on corporations for price-fixing should be tripled, suggesting that $15 billion in penalties would act as a stronger deterrent against such practices.
In addition, the NDP leader proposed implementing a price cap on essential food items to address the disparity between grocery retailers making substantial profits and Canadians struggling to afford basic necessities.
Mr. Singh has been vocal about
criticizing CEOs of grocery stores in recent years, accusing them of inflating food prices while many Canadians struggle to afford groceries. He highlighted the contrast between rising food costs, increased food bank usage, and the grocery sector’s substantial profits in 2023.
In September 2023, Mr. Singh
introduced a private member’s bill aimed at enhancing penalties for price-fixing activities and empowering the Competition Bureau to safeguard smaller grocery stores.
“Canadians are fed up with Liberal and Conservative administrations prioritizing CEOs’ immense profits over protecting hardworking individuals grappling with high grocery expenses,” stated Mr. Singh during that period.
In May 2024, Mr. Singh called for the competition commissioner to
investigate claims of price-fixing involving the Loblaw grocery chain and a company operated by telecom giants Rogers and Bell.
This request was made in response to a letter from Québecor telecom CEO Pierre Karl Péladeau to Industry Minister François-Philippe Champagne on May 9, revealing Loblaw’s decision to terminate a contract with Québecor’s Freedom Mobile subsidiary and instead partner with Glentel, owned by Rogers and Bell. Mr. Péladeau emphasized the need for fair competition in the telecommunications and grocery sectors to benefit Canadians.
The Liberal government had
revised the Competition Act in December 2023 to strengthen the Competition Bureau’s role in promoting competition and preventing anti-competitive behavior.
In September 2023, the Liberal government also hinted at imposing taxes on grocery chains that do not reduce grocery prices.
