Loblaw and George Weston settle bread price-fixing lawsuits

Loblaw and George Weston have settled their involvement in two class-action lawsuits that accuse the companies of fixing the price of bread.

Lawyers involved with the case say the $500-million settlement was announced last year, and was executed on Jan. 31.

The Competition Bureau began investigating alleged bread price-fixing in January 2016.

It said at least $1.50 was added to the price of a loaf of bread due to the alleged 14-year conspiracy, which is purported to involve multiple Canadian companies.

Lawyers are claiming the settlement with Loblaw provides more information that will be used in the remaining cases against Canada Bread, Sobeys, Metro, Walmart Canada and Giant Tiger.

This information includes documents relating to price increases for bread between 2001 and 2016, as well as sales data.

For now, Loblaw and its parent company George Weston are paying a combined $404 million, with the remaining $96 million accounted for through Loblaw’s gift card program announced in 2017.

Twenty-two per cent of the settlement funds, minus court-approved expenses, will be distributed to eligible class members in Quebec. The rest will go to eligible members outside Quebec.

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