If you’ve purchased packaged bread in Canada anytime between 2001 and 2021, a $500 million settlement might soon put money back in your pocket, thanks to a nationwide class action lawsuit accusing major grocery chains of price-fixing.
In a landmark decision, Loblaw Companies Ltd. and its parent company, George Weston Ltd., have agreed to settle allegations that they colluded with other major retailers to artificially inflate bread prices for almost two decades. This settlement, which still awaits court approval, has the potential to affect millions of Canadians who bought qualifying bread products during this period.
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However, while Loblaw and Weston are settling, legal battles against other companies, including Canada Bread, Sobeys, Metro, Walmart Canada, and Giant Tiger, continue to unfold. Here’s everything you need to know about the settlement, how you can claim your share, and what to expect moving forward.
What is the Bread Price-Fixing Settlement About?
Loblaw and Weston have been involved in a massive bread price-fixing scandal, accused of conspiring with other major players in the industry to drive up the cost of packaged bread across Canada. Rather than continue to fight the allegations in court, the companies have agreed to a $500 million settlement, pending court approval.
The Ontario approval hearing is set for May 5, while Quebec’s hearing will occur on June 16. If the settlement is given the green light, it will fully resolve all claims against Loblaw and Weston, meaning no further legal actions will be taken against them related to this issue.
However, lawsuits continue against other grocery chains and bread suppliers involved in the alleged conspiracy, with potential future settlements in the works.
Who is Eligible to Claim Money?
If you purchased pre-packaged bread or qualifying bread products anywhere in Canada between January 1, 2001, and December 31, 2021, you are automatically included in the class action. There is no need to take any action to be eligible for compensation at this stage, but once the settlement is approved, you will need to submit a claim to receive your payout.
How Much Can You Expect to Receive?
The exact amount that each claimant will receive will depend on the number of claims submitted once the settlement is approved. After legal fees and administrative costs, the net settlement funds will be divided as follows:
- 78% for claimants outside Quebec
- 22% for claimants in Quebec
A majority of the funds — 99.5% — will be distributed to consumers who bought bread for personal use. Only a small fraction, 0.5%, will be set aside for businesses and resellers, though the courts will later decide how that portion will be allocated.
If you previously received a $25 Loblaw gift card as part of an earlier compensation program, that amount will be deducted from your final payout.
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What Happens Next?
Once the settlement is approved, additional details about the claims process will be shared. The amount of money each individual will receive will depend on the number of valid claims, so it’s currently unclear exactly how much you could be entitled to.
Here’s what Canadians can do in the meantime:
- Stay informed: Sign up for updates at (for non-Quebec residents) or (for Quebec residents).
- Opt out or object: If you do not wish to be part of the settlement or wish to submit objections, you must do so by April 25 for non-Quebec residents and May 30 for Quebec residents.
- Wait for claims to open: If the settlement is approved, a claims process will be put in place, allowing eligible Canadians to apply for their share.
While the Loblaw-Weston settlement might soon be finalized, other lawsuits are still ongoing, which could lead to further settlements in the future. So, it’s important to stay updated on any new developments.
Take Action Now
If you’ve bought packaged bread in Canada over the last 20 years, there’s a chance you could be entitled to compensation. Make sure you stay tuned for more information on how to claim your share of the settlement.
In the meantime, continue to follow any updates, as there could be more money on the table as other companies settle their part of the bread price-fixing scandal.
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