The Competition Bureau has initiated a probe into the implementation of minimum advertised pricing policies within the grocery industry, regulations that restrict retailers from promoting their lowest prices.
The regulatory body is scrutinizing whether these policies impede Canadians from accessing discounts, diminish price rivalry, create obstacles for discount and emerging grocers, and facilitate price coordination among grocers.
Jeanne Pratt, the agency’s interim competition commissioner, emphasized the importance of grocery stores being able to showcase their top bargains. She expressed concerns that policies hindering this practice hinder grocers’ competitiveness and consumers’ ability to benefit from reduced prices.
Minimum advertised pricing policies establish a pricing floor for retailers to advertise a product, while still permitting them to sell it at a lower price. Suppliers in the retail sector may utilize these rules to safeguard a brand’s reputation, incentivize retailers to offer superior service, or prevent certain retailers from capitalizing on others’ promotional efforts.
The bureau is urging industry stakeholders and consumers to provide evidence regarding the usage of minimum pricing. The information gathered will bolster the ongoing investigation and shape the examination of competition within Canada’s food supply chain.
In a separate initiative in June, the agency launched an inquiry into competition in the grocery industry, focusing on potential issues in production, processing, transportation, distribution, and pricing.