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Loblaw Admits to Bread Price-Fixing and Offers Customers a $25 Gift Card

Loblaw Admits to Bread Price-Fixing and Offers Customers a $25 Gift Card

By Ambia Staley

Loblaw Companies Ltd. has recently admitted to taking part in an industry-wide bread price-fixing scheme for 14 years, between 2001 and 2015.

While Loblaw and George Weston, parent companies of Loblaws and Weston Bakeries, admit to participating in the scheme, they will reportedly receive immunity in exchange for their co-operation with the Canadian Competition Bureau's investigation on the matter.

Galen G. Weston, chairman and chief executive office of both Loblaw and George Weston, said in a statement, "This sort of behaviour is wrong and has no place in our business or Canada's grocery industry."

While Loblaw has claimed that the price-fixing scheme is industry-wide, other major grocers such as Walmart, Metro and Sobeys are not corroborating their statement. Metro has launched an internal investigation on the matter, but has "found no evidence" of any violations, while Sobeys Inc. has stated that it "does not believe that it or any of its employees have violated the Competition Act," and "any assertion of an industry-wide price-fixing arrangement has not been proven." All 3 grocers will however, cooperate with the investigation.

While the investigation into price-fixing is still ongoing, Loblaw Companies Ltd. has already taken steps to improve their internal operations. Earlier this year, the company established an independent compliance officer and provided compliance training and re-certification to select personnel and managers. Loblaw has also stated that employees responsible for their role in the price-fixing are no longer employed with the company.

In addition to changes made to internal operations, as "goodwill gesture", the grocer will be offering a $25.00 gift card to customers who may have purchased bread from one of their stores over the past few years and had been impacted by the price-fixing.

"The gift card is a direct acknowledgment of that to our customers. We hope that they’ll see it as a meaningful amount that demonstrates our commitment to keeping their trust and confidence," Weston said in a statement made late on Tuesday.

How to Get Your $25.00 Gift Card

(01/08/18 Edit:)Registration for the $25.00 gift cards is now open. Customers can visit LoblawCard.ca and enter their personal information to receive a gift card in the mail.

Before you sign up, visit this page to learn more about the gift card offer.

Loblaw expects that this gesture could cost them as much as $150 million with an expected 3 to 6 million people estimated to claim the gift cards.

39 Comments

    • Loblaw discovered that Canadians were overcharged for the cost of some packaged bread products in our stores and other grocery stores across Canada. In response, we're offering eligible customers a $25 Loblaw Card, which can be used to purchase items sold in our grocery stores across Canada.

      Registration for the Loblaw Card Program will open on January 8, 2018. Please check back then.

      In the meantime, you can also provide your email address to receive a notice once registration has opened.

      mod edit: link to pre-register https://loblawcard.ca/
    • Report Post
    • Loblaw is offering eligible customers who register online at LoblawCard.ca before May a $25 gift card that can be used at its grocery stores across Canada.

      Loblaw discovered that Canadians were overcharged for the cost of some packaged bread products in our stores and other grocery stores across Canada. In response, we're offering eligible customers a $25 Loblaw Card, which can be used to purchase items sold in our grocery stores across Canada.

      Registration for the Loblaw Card Program will open on January 8, 2018. Please check back then.

      In the meantime, you can also provide your email address to receive a notice once registration has opened.

      https://loblawcard.ca/
    • Report Post
    • is there a TL;DR for eligibility?
    • Report Post
    • Is this legit? What's "eligible" customers?
    • Report Post
    • VertigoM wrote:
      Dec 19th, 2017 5:02 pm
      Is this legit? What's "eligible" customers?
      Probably for those who have bought bread from loblaws within the past month or so, which I have done. Worth giving it a shot.
    • Report Post
    • blackbirdman wrote:
      Dec 19th, 2017 5:04 pm
      Probably for those who have bought bread from loblaws within the past month or so, which I have done. Worth giving it a shot.
      A month only? It's gotta be longer than that... Loblaw just admitted to price fixing bread for the past 14 years.....
    • Report Post
    • Repost, posted in Freebies already.
    • Report Post
    • Lols; subscribed thread
    • Report Post
    • always makes me weary when companies create a separate domain instead of using their existing domain and forwarding it elsewhere.

      how do i know this is legit loblaw website... loblaw.ca/card would've worked.
    • Report Post
    • 150 people viewing the thread lol
    • Report Post
    • actng wrote:
      Dec 19th, 2017 5:07 pm
      always makes me weary when companies create a separate domain instead of using their existing domain and forwarding it elsewhere.

      how do i know this is legit loblaw website... loblaw.ca/card would've worked.
      Exactly how i felt, although chrome is saying it is a "secure" website.... not sure if i want @2Riskit hahaha 😝
    • Report Post
    • yeah they trying to be proactive so hopefully a class action lawsuit as they really owe hundreds to thousands to many that are loyal to their high prices which is not me except when free money as we all go to frills, loblaws, zehs, superstore or some form of weston and bakeries in last few decades :)
    • Report Post
    • Lol work blocks the site as "SPAM"
    • Report Post
    • leeoku wrote:
      Dec 19th, 2017 4:47 pm
      Wonder if there will be a class action lawsuit like all the LCD, ram etc.
      Perhaps not since Loblaws self-reported and apparently will voluntarily compensate customers. From TFA:
      When first discovering this anti-competitive behavior in March of 2015, Loblaw and George Weston immediately reported it to the bureau and subsequently cooperated fully with it, the companies said.

      They said they have taken actions to address the role in industry-wide price fixing of bread. What is more, Loblaw is offering customers $25 Loblaw gift card for purchases across Canada.
      Added: See also this RFD thread [Loblaws] loblaws offering $25 gift card for price fixing bread prices
    • Report Post
    • Note this website is not registered by Loblaw Companies.
    • Report Post
    • "Oops, we just discovered that we've been overcharging the public, our bad." It's not a discovery, it's an admission of wrong doing. The PR spin here is amazing.
    • Report Post
    • Im not suprise that they are caught price fixing, after being named as one of the Canadian companies evading taxes by using tax haven abroad. Shame on them, corporate greed exposed.
    • Report Post
    • actng wrote:
      Dec 19th, 2017 5:07 pm
      always makes me weary when companies create a separate domain instead of using their existing domain and forwarding it elsewhere.
      Simple. Get some sleep ;)
      how do i know this is legit loblaw website...
      Simple. Don't register ;)
    • Report Post
    • Sounds like they got a sticky situation on their breads.
    • Report Post
    • I don't know how the hell some people get through life scared of their own shadow.
    • Report Post
    • ACKNOWLEDGMENT


      We have received your request to be notified once registration for the $25 Loblaw Card program opens. You will receive an email notifying you when you can register.
      Please note that registration has not yet opened. You must complete and submit a registration form in order to be eligible to receive a $25 Loblaw Card.
      If you believe you have received this email in error, you can remove yourself from future communications by following this Unsubscribe link.
      Sincerely,
      Program Administrator


      Ooooooooooooooooh scary.

      Image
    • Report Post
    • Sorcerer wrote:
      Dec 19th, 2017 5:32 pm
      "Oops, we just discovered that we've been overcharging the public, our bad." It's not a discovery, it's an admission of wrong doing. The PR spin here is amazing.
      They genuinely thought agreeing on a fixed price with competitors was acceptable. After all dairy, telcos and others in Canada engage in similar behavior.
      Canada engage in similar

      Seems odd they would fix prices on a single item.
    • Report Post
    • Another case of too big to jail. The government is very good for giving hell to citizens or small business owners who are caught in Kafkaesque tax situations, but when it comes to companies with revolving door executives that contribute to big parties, suddenly it's "no evidence of misdeeds" and they all quickly look away.

      Until the day when politicians grow cojones and sends in the police to raid all their offices and TRULY look at all their records, and jail those engaging in m
      misdeeds, we're going to keep paying 2x more for phone plans, basic goods, etc
    • Report Post
    • I think basically by signing up for this and getting a gift card, you are excluding yourself from the possible class action suits that will follow from the "deep" pockets.
    • Report Post
    • Guilty only when found out. :)
    • Report Post
    • I suspect 'eligible customer' means anyone who lives in Canada and bothers to email the link.

      Far too much work to verify if someone has purchased bread in a certain period of time.
    • Report Post
    • I certainly hope the Competition Bureau comes down hard on the parties in question - do some basic math - they have been overcharging customers for over a decade. If you were gouged 25 cents a loaf of bread the GC compensates for approx 2 years of gouging - what about the other years? I am sure the average CDN family buys/bought at least one loaf of bread a week.
      I strongly encourage everyone to sign up. Radio pundits today were saying Loblaws had a strategy of announcing this right before the Holiday Season hoping most people will be too busy or forget
    • Report Post
    • Yup, thought it was uncanny when every retailer sold bread at nearly exact prices and discounts.

      $25 is a drop in the bucket though.
    • Report Post
    • Let's make our Christmas even more merrier and have Shell, Esso and Petro Canada do the same... but it should probably be $5,000 per person since their price fixing may have been going on since the 60's. LOL
    • Report Post
    • A $25 dollar gift card is nothing. Imagine for a family if it cost you an extra $1 a week for 14-years. 52 * 14 = $728. Now add interest.
    • Report Post