Canadian shoppers now have a chance to get their share of a $500-million settlement in a class-action lawsuit related to the alleged industry-wide price fixing of bread. Image: The Canadian Press
Canadian shoppers now have a chance to claim compensation from a massive $500-million class-action settlement. The lawsuit involves alleged industry-wide price fixing of bread.
Strosberg Wingfield Sasso LLP and Orr Taylor LLP announced Thursday that the claims process is officially open. The settlement covers Loblaw Cos. Ltd. and its parent company, George Weston Ltd.
Eligible Canadians who purchased packaged bread for personal use between January 1, 2001, and December 31, 2021, can apply. This includes bagged bread, buns, rolls, bagels, naan, English muffins, wraps, pita, and tortillas. Applications must be submitted by December 12.
No proof of purchase is required. Claim forms are available online at CanadianBreadSettlement.ca for residents outside Quebec, and QuebecBreadSettlement.ca for those living in Quebec on December 31, 2021.
“This resolution provides Canadian consumers with the monetary relief they deserve,” said Jim Orr, partner at Orr Taylor LLP.
The Settlement Background
The $500-million settlement was approved in May by Ontario Superior Court Judge Ed Morgan. Loblaw and George Weston will pay a combined $404 million after being accused of coordinating the price of bread for over a decade.
The remaining $96 million comes from a gift card program Loblaw ran in 2018 and 2019. That initiative aimed to reimburse customers who paid about $1.50 extra per loaf. Judge Morgan called the settlement “an excellent and fair result for all concerned.”
Quebec’s Superior Court approved the agreement in July. Once legal fees and court costs are deducted, 78% of the funds will go to shoppers in Ontario, while the rest will be distributed in Quebec.
Customers who did not receive a previous gift card may receive up to $25. Those who already accepted a $25 Loblaw card can submit a claim for additional compensation. However, extra payments depend on available funds and must exceed a $5 minimum threshold.
How to Claim
“We encourage Canadian consumers who purchased packaged bread to apply for compensation under the settlement,” said Jay Strosberg, managing partner at Strosberg Wingfield Sasso LLP.
The law firms emphasize that the claims process is simple and user-friendly, allowing Canadians to apply online quickly.
Broader Legal Context
This settlement marks a key development but does not end all legal action related to bread pricing. Other large grocers, including Metro, Sobeys, Walmart Canada, Canada Bread, and Giant Tiger, are still facing class-action lawsuits.
While these companies deny any wrongdoing, Loblaw and George Weston admitted to participating in price coordination to the Competition Bureau in 2015. This admission became public in 2017.
Funds for Canadian businesses that purchased bread for resale from 2001 to 2021 are being held in trust. The courts will decide distribution at a later stage.
This settlement provides a rare opportunity for Canadians to recover losses from an alleged two-decade pricing scheme. Anyone who bought packaged bread during the period is encouraged to check eligibility and submit a claim before December 12.
