The Competition Bureau has initiated an inquiry into the implementation of minimum advertised pricing policies within the grocery industry, which are regulations that restrict retailers from promoting their lowest prices openly.
The regulatory body is investigating whether these policies impede Canadians from accessing discounts, diminish price rivalry, create obstacles for discount and emerging grocers, and facilitate price collusion among grocers.
Jeanne Pratt, the interim competition commissioner of the agency, emphasized the public’s anticipation for grocery stores to showcase their best deals. She expressed concerns that these policies hinder competition among grocers and limit consumers’ access to reduced prices, particularly at a time when food affordability is a significant concern for Canadians.
Minimum advertised pricing policies establish a price floor for retailers’ promotional activities, although they may still be able to sell products below this advertised price.
In the retail sector, suppliers utilize advertised price regulations to safeguard a brand’s reputation, incentivize retailers to offer superior service, or prevent certain retailers from capitalizing on the marketing efforts of others.
The bureau is encouraging industry stakeholders and consumers to provide evidence regarding the utilization of minimum pricing policies. This input will assist the bureau in its investigative process and guide its assessment of competition within Canada’s food supply chain.
In a previous development, the agency launched an inquiry in June into competition within the grocery industry, encompassing potential issues in production, processing, transportation, distribution, and pricing.