Competition watchdog launches probe into grocery sector’s minimum advertised pricing policies

The Competition Bureau has launched an investigation into the use of minimum advertised pricing policies in the grocery sector.

The watchdog says the policies can prevent retailers from advertising their lowest prices, potentially keeping deals from consumers and restricting competition.

It says minimum pricing policies set the lowest price at which retailers can advertise a product, even if they are allowed to sell it for less, and can be imposed by suppliers or negotiated between suppliers and retailers.

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The bureau is asking industry participants and consumers to come forward with evidence about minimum pricing use.

It says the information it receives will support its investigation and inform its examination of competition across Canada’s food supply chain.

In June, the agency launched an investigation of competition in the grocery sector, including potential problems in production, processing, transportation, distribution and pricing.