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Competition Bureau investigates minimum advertised pricing policies in grocery sector
The watchdog says the policies can block retailers from advertising their lowest prices and limit competition for consumers.
The Competition Bureau launched an investigation into minimum advertised pricing policies in the grocery sector, building on a broader probe into competition across Canada's food supply chain.
Minimum advertised pricing policies set a floor on the price retailers can advertise a product, even if they sell it for less. The Bureau warns these policies restrict competition and prevent consumers from accessing lower prices.
Suppliers may implement these advertised price rules to protect a brand's image or encourage better retail service, while also preventing some retailers from unfairly benefiting from competitors' promotional efforts.
Interim competition commissioner Jeanne Pratt said on Monday that "Canadians expect grocery stores to be able to advertise their best deals," expressing concern these policies hinder grocers from competing and restrict consumer access to lower prices.
The Bureau is seeking evidence from industry participants and Canadians about how these policies affect grocery prices, with feedback informing the broader examination of competition across the food supply chain.