An Ontario judge has given the green light to a settlement in a class-action case that claimed Loblaw and its parent company, George Weston Ltd., took part in a plan to keep bread prices high across the grocery industry. (Aaron Vincent Elkaim/The Canadian Press)
A judge in Ontario has approved a massive $500-million settlement in a long-running case accusing grocery giant Loblaw and its parent company, George Weston, of fixing bread prices for Canadian shoppers.
This ruling, made by Ontario Superior Court Judge Ed Morgan on May 7, clears the way for some Canadians to receive compensation for overpriced bread they bought over a 20-year span.
Judge Morgan praised the settlement, calling it “an excellent and fair result” for everyone involved. He described the deal as being in the best interest of the public and within a reasonable range for such cases.
What’s in the Settlement?
Under the agreement, Loblaw and George Weston will pay a combined $404 million. An additional $96 million is counted from a previous gift card program Loblaw launched in 2018. That initiative offered customers $25 gift cards as an apology when the bread price-fixing scandal came to light.
After subtracting legal fees and other costs, 78% of the remaining funds will go to shoppers in Ontario. The rest will be distributed to consumers in Quebec.
People who purchased bread between January 2001 and December 2021—but did not take part in the previous gift card program—can now expect to receive up to $25. If funds are left over, even those who claimed the gift card may receive additional money.
A Long Road to Justice
The price-fixing allegations sparked national outrage when they were made public. Though several grocery chains like Metro, Walmart Canada, Sobeys, and Giant Tiger were accused of taking part in the scheme, Loblaw and George Weston were the only ones to admit their role.
They informed the Competition Bureau about their involvement back in 2015, but the public didn’t learn about it until 2017. In response, Loblaw offered the gift cards to customers—but that gesture wasn’t enough to settle the matter.
In December 2019, a class-action lawsuit was launched in Quebec against the companies involved. The Ontario case was filed two years later by law firm Strosberg Wingfield Sasso LLP.
Quebec’s Turn Next
While the Ontario court has now finalized the settlement, Quebec’s court is expected to review and decide on it during a hearing scheduled for June 16.
Judge Morgan acknowledged that the legal fight has been intense on all sides. He said the limited number of objections—just four—and the 475 people who chose not to participate are tiny in comparison to the estimated 20 million affected shoppers.
He reviewed the written complaints and found that the only reason for objection was the desire for a bigger payout. However, he said those reasons weren't strong enough to overturn what he sees as a reasonable and well-negotiated deal.
Loblaw Responds
Loblaw did not offer new comments after the court’s decision but pointed to a previous statement issued in 2024. In it, the company apologized for its role in price fixing and pledged to restore customer trust through better practices.
George Weston, on the other hand, has not issued a statement yet.
The settlement also includes a promise that both companies will assist in any legal actions still being taken against other grocers who have not offered compensation.
