According to a Globe and Mail report, the Competition Bureau has amped up its investigation of Loblaws’ pricing practices.
John Pecman, Commissioner of Competition at the Competition Bureau, has requested that the Federal Court force four of Loblaws’ key suppliers to produce sworn evidence about their dealings with the grocer. This will determine whether Loblaws activities could be anti-competitive when compared with the same dealings at key rival retailers. This comes nearly three years after the bureau launched its original investigation into Loblaw’s pricing practices.
Pecman believes that Loblaws may still be conducting some questionable practices, forcing suppliers to meet predetermined profit margins based on the advertised prices of competing retailers. The bureau is concerned about multiple Loblaw’s supplier programs, worrying that they are an abuse of its dominant industry position.
Pecman adds that many suppliers haven’t co-operated with the bureau for fear of retaliation by Loblaw. This has prompted the federal agency to seek court orders, forcing vendors to comply.
The four suppliers in question include General Mills, Wrigley, Reckitt Benckiser (Canada) Inc. and A. Lassonde Inc. The Canadian Federation of Independent Grocers has called for a code of conduct to regulate grocer-supplier practices, although large retailers oppose such government intervention.
