Some Canadian shoppers could cash in on part of a massive bread price-fixing class-action settlement from Loblaw.
Law firms Strosberg Wingfield Sasso LLP and Orr Taylor LLP announced on Tuesday that a $500-million settlement agreement with George Weston Limited and Loblaw Companies Limited was executed on Jan. 31, 2025, to settle nationwide class-action lawsuits against them related to industry-wide price fixing for certain packaged bread products.
The settlement is still subject to court approval in Ontario and Quebec. Approval hearings will occur on May 5 in Toronto and June 16 in Montreal.
If approved, the law firms say the settlement will resolve all claims against Loblaw and Weston related to the class actions.
“On behalf of the Weston group of companies, we are sorry for the price-fixing behaviour we discovered and self-reported in 2015. This behaviour should never have happened,” said Galen Weston Jr., chairman of Loblaw and chief executive officer of Weston, in a statement in July 2024.
“Reaching a settlement on this matter was the right thing to do in response to previous behaviour that did not meet our values and ethical standards,” he added.
As a recap, in 2015, the grocery giant said it had discovered the industry-wide bread price-fixing arrangement and immediately reported it to the Competition Bureau.
This means Canadians probably spent more on bread than they should have between 2001 and 2015.
Other major grocery stores, such as Metro, Sobeys, and Walmart, were implicated in the scandal. The Competition Bureau said the companies “committed indictable offences under the Competition Act.”
Loblaw and Weston said it immediately responded by overhauling its pricing management and “significantly enhancing” its compliance programs.
Eligibility for bread price-fixing settlement
According to the law firms, if you bought packaged bread anywhere in Canada (excluding Quebec) between Jan. 1, 2001, and Dec. 31, 2021, you’re automatically included in the Ontario settlement.
The Quebec class action includes any Quebec resident who bought at least one package of bread between Jan. 1, 2001, and Dec. 19, 2019.
Those who want to opt out of the Ontario class action must do so by midnight PST on April 25. Quebec class members must opt out by May 30.
How much could you get?
Weston and Loblaw will provide a cash payment of $404 million, with $96 million already paid by the grocer through the Loblaw Card program in 2017.
Class members in Canada outside of Quebec will be allocated 78 per cent of the settlement funds (minus court-approved expenses), and 22 per cent will go to class members in Quebec.
“This resolution provides Canadian consumers with monetary relief they deserve,” said Jay Strosberg, managing partner at Strosberg Wingfield Sasso LLP.
According to law firms, the proposed distribution plan provides class members with compensation against 99.5 per cent of net settlement funds. The compensation you could individually receive depends on the number of approved claims.
The claims process has yet to be established.
Lastly, the settlement will also provide access to information that will be used in continuing the case against the remaining defendants: Canada Bread, Sobeys, Metro, Walmart Canada, and Giant Tiger.
“The expectation is that this will result in further significant monetary recovery for Canadians,” said Jim Orr, partner, Orr Taylor LLP.
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