Canadian Grocer’s Post

On July 25, 2024, George Weston Limited and Loblaw Companies Limited announced a $500 million settlement to resolve class-action lawsuits related to their involvement in a decade-long bread price-fixing scheme. Key Details: - Settlement Breakdown: George Weston will pay $247.5 million in cash, while Loblaw will pay $252.5 million (including $156.5 million in cash and $96 million previously paid through the Loblaw Card program). - Industry-Wide Arrangement: The companies were part of a price-fixing arrangement involving packaged bread products between 2001 and 2015. - Apology and Actions: Galen G. Weston, Chairman of Loblaw and CEO of George Weston, apologized to Canadians and highlighted steps taken to enhance compliance and overhaul pricing management. Statements from Officials: - Galen G. Weston: "On behalf of the Weston group of companies, we are sorry for the price-fixing behavior we discovered and self-reported in 2015. This behavior should never have happened. Reaching a settlement on this matter was the right thing to do in response to previous behavior that did not meet our values and ethical standards." - Per Bank, President and CEO of Loblaw: "Canadians count on Loblaw to provide great value and we seek to meet their needs and earn their trust whenever and wherever they choose to shop with us." Next Steps: - The settlement must be approved by the courts, and the funds will be distributed to eligible class members based on a court-approved plan. This settlement marks a significant step towards accountability and reinforces the importance of ethical business practices in the consumer goods industry. Follow Global Regulatory Insights for more updates! #GeorgeWeston #Loblaw #PriceFixing #Settlement #ConsumerProtection #EthicalBusiness #GRI #RegulatoryInsights #Canada

🚨 Price Check on Aisle 5! 🚨 Breaking News - the ACCC is taking Woolworths and Coles to the Federal Court for allegedly inflating prices, then calling them "discounts." Turns out, those “Prices Dropped” might have left consumers short-changed instead of saving cents. 'Checkout' our latest article here on this important legal development, a must read for anyone who sells anything! https://lnkd.in/gc_sxcyD 😬 #AustralianConsumerLaw #FranchiseLawyerSydney #LegalUpdate

Whether you realise it or not, you enter into contracts on a daily basis, for example, buying a loaf of bread at the supermarket. Read more here https://lnkd.in/ekfK9a8u #fsmsolicitors #disputeresolution #litigation #contractlaw #wiltshire #fromesomerset

Consumer expectations are continuously elevated. Nowadays, tripping up by the Consumer Protection Law could be as easy as falling off a log! Commodity pricing fluctuates dramatically since the start of pandemic and the multi-country wars and conflicts, performing due diligence on your pricing strategy becomes more important than ever! Whether you’re exploring the Consumer Protection Law for a new market to enter, or planning to review your pricing practice against relevant laws and regulations, please come and speak with one of our advisors today! #kwkconsultancy #consumerprotectionlaw #australia https://lnkd.in/gan6ZidQ

Australian consumer watchdog ACCC has taken Woolworths and Coles to court over alleged misleading prices throughout the country. The ACCC’s allegations relate to products sold by each of Woolworths and Coles at regular long-term prices which remained the same, excluding short-term specials, for at least six months and in many cases for at least a year. 🔗 Read the full story online. #ACCC #Woolworths #Coles #legalaction #law #consumer #commition #prices #longtermprice #FMCG #Grocery #Supermarkets #NZSupermarkets #SupermarketsNZ #NZGrocery #GroceryIndustry #GroceryRetail

They got caught in a pincer by offering too much shrimp? Retail bankruptcies are what we hear about, because everyday citizens have heard about the company. Most bankruptcies are from companies you've never heard of. The most painful of these bankruptcies/bad debts come from a customer you thought was doing very well (because they told you they were). If you sell on open terms, you should at the very least explore Credit Insurance. You might decide it's not for you... but you might find it's exactly what you needed to spark your growth.

The competition regulator is taking Australia’s two biggest supermarkets to court for allegedly breaching the Australian Consumer Law by misleading consumers through discount pricing claims on hundreds of everyday supermarket products. The Australian Competition and Consumer Commission (ACCC) has taken legal action against Woolworths and Coles, accusing them of misleading conduct by falsely claiming discounts on various everyday items. The ACCC alleges that the promotional prices were higher than or the same as the previous regular prices. The supermarkets implemented temporary price spikes to establish a higher “was” price before offering discounts. The regulator is seeking declarations, penalties, costs, and other orders, including community service orders for the supermarket giants to fund a registered charity to deliver meals to Australians in need. The maximum penalty is $50 million, or three times the value of the benefit obtained, or 30 per cent of the corporation’s adjusted turnover during the breach turnover period. The ACCC’s inquiry into the supermarket sector’s pricing practices pre-dates the legal proceedings.

Yesterday I joined Jim Chalmers, Federal Treasurer, Peter Dutton, Federal Opposition Leader and Guy Gaeta, NSW cherry and apple grower on Australian Broadcasting Corporation (ABC) radio, to discuss the Food and Grocery Code of Conduct Review 2023–24 - Interim Report. The existing voluntary Food and Grocery Code fails to deliver and is considered a toothless tiger, offering no penalties for breaches and allowing supermarkets to opt out of key protections. This, stifles innovation and investment, ultimately hurting consumers with less choice and potentially higher prices. The proposed reforms highlighted in the Food and Grocery Code of Conduct Review 2023–24 - Interim Report, recommends a mandatory Code enforced on supermarkets with a turnover exceeding $5 billion – Coles, Woolworths, Aldi, and Metcash. It proposes tougher protections for suppliers, including: Mandatory participation: The current opt-out clause for supermarkets would be scrapped. Stiffer penalties: The ACCC would be empowered to enforce the Code, with penalties of up to $10 million or 10% of a supermarket's annual turnover for serious breaches. Dispute resolution with teeth: A two-step process involving mediation and then independent arbitration would be established, protecting suppliers from retribution for raising concerns. Independent oversight: A Code Supervisor would be appointed to monitor compliance and publish annual reports on supplier satisfaction. The surprise ruling out of divestiture has raised eyebrows with concerns about market concentration, not fully addressed. While breaking up the big players may not be the silver bullet, it highlights the need to equip the ACCC with stronger tools. The Commission needs the power to not just monitor, but actively promote a healthy level of competition in the grocery sector. https://lnkd.in/g5yUyDqV #GroceryCodeAU #CompetitionMatters #GroceryPrices #Consumer #ConsumerSpending #ACCC #RetailSupplyChain #ConsumerChoice #InnovationInFood

The $500 million settlement to be paid by Loblaw and its parent company George Weston Limited for price-fixing in relation to bread prices in Canada, as reported yesterday in the Globe and Mail, is unprecedented. This is a significant example of effective enforcement of competition law in Canada. In parallel with this, the Competition Act has recently been amended in a number of important respects, which likely will lead to even stronger enforcement by the Competition Bureau going forward. These developments underscore the importance for senior corporate executives and board members of ensuring that effective compliance programs are in place directed toward avoiding any such serious antitrust transgressions and concurrently detecting signs of such so that they can be addressed proactively. Otherwise, the risk of serious liabilities (criminal and civil) to corporations and individuals is clearly increasing. Experienced competition counsel should be consulted in this regard.    https://lnkd.in/gxQPEJzp