The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry. These policies can restrict retailers from promoting their lowest prices, potentially impacting consumers’ ability to find discounts and hindering price competition. The investigation aims to assess whether such policies create obstacles for new and discount grocers and facilitate price coordination among grocery stores.

Interim competition commissioner Jeanne Pratt emphasized the importance of grocery stores being able to advertise their best deals to meet consumer expectations. Concerns have been raised that these policies may impede competition among grocers and limit consumer access to lower prices, particularly in light of ongoing concerns about food affordability.

Minimum advertised pricing policies establish a price floor for products that retailers can advertise, though they may still sell the products for less. These rules are commonly used by suppliers in the retail sector to safeguard a brand’s reputation, incentivize better service from retailers, and prevent certain retailers from capitalizing on the marketing efforts of others.

The Competition Bureau is soliciting input from industry stakeholders and consumers to gather evidence on the use of minimum pricing regulations. The information collected will aid the investigation and contribute to the bureau’s broader examination of competition within Canada’s food supply chain.

Earlier in June, the agency commenced an inquiry into competition issues within the grocery sector, encompassing aspects such as production, processing, transportation, distribution, and pricing practices.