Canadian consumers who purchased packaged bread over the past two decades may soon be compensated as part of a massive $500 million class-action settlement linked to a bread price-fixing scheme involving several major grocery retailers.
The class action accuses multiple grocery chains, including Loblaw Companies Ltd., George Weston Ltd., Metro, Sobeys, and Walmart, of conspiring to fix prices on packaged bread products, causing Canadians to pay artificially inflated prices.
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Court Greenlights $500 Million Settlement in Bread Pricing Case
On May 8, Justice Ed Morgan approved the multi-million dollar settlement, describing the deal as fair, reasonable, and in the best interests of the Canadian public affected by the overpricing. The lion’s share—$404 million—will be paid by George Weston and Loblaw.
This is not the first time Loblaw has paid out. Back in 2017, the grocery chain launched the Loblaw Card program, distributing $96 million in compensation to customers who purchased bread between 2001 and 2015.
Who Is Eligible for the Settlement?
Canadians Who Bought Packaged Bread Between 2001 and 2021 May Qualify
To be eligible for a portion of the settlement, individuals must:
- Be a Canadian resident
- Have purchased packaged bread from January 1, 2001 to December 31, 2021
The settlement applies nationwide but divides the compensation into two groups:
- 78% of the settlement is allocated to Canadians outside Quebec
- 22% is reserved for Quebec residents, pending a court hearing on June 16
What Happens Next for Claimants?
Payout Details Still to Come
While the court has approved the settlement, the exact amount that eligible Canadians will receive has not yet been announced. The final distribution will occur after:
- Legal fees
- Administrative costs
- Taxes and interest
are deducted from the $500 million fund.
Canadians are encouraged to visit the Canadian Packaged Bread Class Actions Settlement website to stay informed and receive updates on the process and deadlines.
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George Weston Issues Apology for Past Misconduct
In a July 2024 statement, George Weston—former CEO and president of Loblaw—issued a public apology:
“On behalf of the Weston group of companies, we are sorry for the price-fixing behaviour we discovered and self-reported in 2015. This behaviour should never have happened. We have the privilege of serving Canadians from coast to coast. That privilege needs to be earned each and every day.”
Why This Settlement Matters
This case is a landmark example of corporate accountability in Canada’s retail sector. It highlights both the power of consumer class actions and the importance of transparency in pricing. As the process moves forward, millions of Canadians could finally receive compensation for being overcharged for a staple grocery item for more than 20 years.