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. The investigation aims to determine if such policies hinder consumers from finding discounts, diminish price competition, erect obstacles for discount and new grocers, and facilitate price coordination among grocers.
Jeanne Pratt, the interim competition commissioner, emphasized the importance of grocery stores being able to showcase their best deals. She expressed concerns that restrictions on this practice could impede competition among grocers and limit consumer access to lower prices, especially at a time when food affordability is a significant concern.
Minimum advertised pricing policies establish a pricing floor for products that retailers can advertise, although they may still sell them for less. These policies are often utilized by suppliers in the retail sector to safeguard a brand’s reputation, incentivize better service from retailers, or prevent certain retailers from capitalizing on the marketing efforts of others.
Industry participants and consumers are urged to provide evidence regarding the use of minimum pricing for the bureau’s investigation. The information gathered will support the examination of competition within Canada’s food supply chain.
In addition to the current inquiry on minimum advertised pricing, the agency commenced an investigation in June into competition within the grocery sector, focusing on potential issues in production, processing, transportation, distribution, and pricing.