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GATINEAU — Canada’s competition watchdog is investigating whether grocery pricing policies are preventing retailers from advertising their lowest prices and limiting consumers’ access to deals.
The Competition Bureau said Monday it has launched an investigation into the use of minimum advertised pricing policies in the grocery sector.
Those policies can be imposed by suppliers or negotiated between suppliers and retailers, and set the lowest price at which a retailer is allowed to advertise a product.
The bureau says the practice can make it more difficult for retailers, including discount grocers, to compete on price in a sector dominated by a small number of large companies.
It is examining whether the policies are making it harder for Canadians to find deals, reducing price competition, creating barriers for discount and new grocery retailers, and making it easier for grocers to coordinate prices.
The bureau says minimum advertised pricing policies can prevent retailers from promoting lower prices even if those prices are available in stores.
It also says some retailers may decide to eliminate in-store discounts if they are unable to advertise them.
Interim Commissioner of Competition Jeanne Pratt said Monday the bureau is concerned the policies could make it harder for grocers to compete and for consumers to access lower prices at a time when food affordability remains a concern.
The bureau is asking consumers, retailers, suppliers and others with experience with minimum advertised pricing policies to provide information about how they affect grocery pricing.
The information will support the investigation and a broader examination of competition throughout Canada’s food supply chain.
The Competition Bureau has previously found that greater competition in the retail grocery sector could help lower prices while increasing consumer choice and innovation.
The bureau is an independent federal law enforcement agency responsible for protecting and promoting competition in Canadian markets.
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