Canadian shoppers may soon get cash payouts as a judge approves a $500M settlement in the Loblaw bread price-fixing case.
Judge Greenlights Massive Bread Price-Fixing Settlement
A major chapter in Canada’s grocery industry has closed as an Ontario Superior Court judge approved a $500-million settlement in the high-profile bread price-fixing class action against Loblaw Companies Ltd. and its parent, George Weston Ltd. The decision means millions of Canadian shoppers could soon see compensation for years of inflated bread prices.
How the Settlement Breaks Down
Judge Ed Morgan described the settlement as “an excellent and fair result for all concerned,” emphasizing that it serves the best interests of affected consumers and falls “squarely within the zone of reasonableness”. The agreement includes:
- $404 million in direct payments from Loblaw and George Weston
- $96 million accounted for through a previous gift card program Loblaw launched in 2017 as an apology to customers impacted by the price-fixing scheme
After legal fees and court expenses, about 78% of the remaining funds will be distributed to shoppers in Ontario and across Canada (excluding Quebec), while 22% will go to Quebec residents.
Who Is Eligible for Compensation?
If you purchased packaged bread for personal use or resale between January 2001 and December 2021 and did not previously claim a Loblaw gift card, you could receive up to $25. If funds remain after this distribution, those who claimed the earlier gift card may also get a share.
A Saga of Industry-Wide Allegations
The settlement concludes years of litigation involving not just Loblaw and George Weston, but also other major grocers like Metro, Sobeys, Walmart Canada, Canada Bread, and Giant Tiger. While most companies denied involvement, Loblaw and George Weston admitted to the Competition Bureau in 2015 that they participated in bread price coordination, though this admission became public only in 2017.
Public Response and Next Steps
Despite the settlement, only a handful of objections and opt-outs were recorded—a small fraction compared to the estimated 20 million Canadians affected. Judge Morgan noted that most objections centered on a desire for higher compensation, but found no principled grounds to reject the deal.
Loblaw has publicly apologized and pledged to rebuild customer trust, stating, “We know we have more to do to regain the trust of our customers and we’re committed to doing that”.
The settlement resolves all national claims against Loblaw and George Weston related to bread price-fixing, and the companies have agreed to cooperate with ongoing actions against other grocers that have not settled.
For continuous coverage and real-time updates, keep following Maple News Wire.
