The Competition Bureau of Canada has initiated an investigation into minimum advertised pricing policies within the grocery sector. These policies, which can be set by suppliers or negotiated with retailers, dictate the lowest price at which a retailer can advertise a product.

In a market dominated by a few large companies, such policies can restrict the ability of retailers, especially discount grocers, to offer competitive prices. The Bureau is particularly worried that these restrictions prevent consumers from accessing lower prices and limit competition among grocery stores.

The Bureau is seeking input from consumers, retailers, and suppliers to understand the impact of these policies on grocery pricing. This feedback will aid in their investigation and broader examination of competition within Canada’s food supply chain.

Interim Commissioner of Competition, Jeanne Pratt, emphasized the importance of allowing grocery stores to advertise their best deals, especially in light of ongoing concerns about food affordability for Canadians.