Metro is launching legal proceedings against Loblaw and Weston for having “falsely implicated” it in a bread price-fixing conspiracy in which the Montreal grocer claims to have never participated.
Metro indicated late Tuesday that it had served a defense and a claim for damages in the bread price-fixing class action filed in Ontario in 2017 on behalf of consumers and accepted by the Superior Court of Ontario in 2021.
This class action targets Loblaw, Sobeys, Walmart, Giant Tiger and the grocer Metro itself.
Metro management was not granting interviews Tuesday. Spokesperson Marie-Claude Bacon nevertheless indicated to The Press that the legal document will be filed in court “in a few weeks”.
The legal action targets only Loblaw and Weston, as Marie-Claude Bacon emphasizes that these companies falsely implicated Metro in an alleged cartel in order to “disperse their civil liability” and “avoid the public perception that Loblaw was the only retailer involved in a conspiracy “.
Metro refers in particular to a press release published in 2017 where Loblaw and Weston mention that the participants in a bread price-fixing agreement included Loblaw and the Bakeries division of George Weston, but also “other large retailers”.
The senior director of the Agri-Food Analytical Sciences Laboratory at Dalhousie University is surprised to see Metro react now.
“It’s a late reaction. The public accusation dates back to 2017 when Loblaw decided to throw everyone under the bus. »
He suspects that this year’s fine against Canada Bread prompted Metro to go on the attack. “Metro wants to protect its image. This price-fixing affair has gone on for so long that it is beginning to erode the reputation of the entire industry, regardless of whether the companies are guilty or not. »
After collaborating with authorities in exchange for immunity, Weston and Loblaw admitted in 2017 to participating in a baked goods price-fixing scheme from 2001 to 2015 and offered a $25 gift card to their customers in as compensation.
Metro has consistently denied that it, or its employees, had any involvement in a price-fixing conspiracy or that it, or its employees, violated the Competition law.
After seven years of investigation, last June the Competition Bureau of Canada imposed a fine of $50 million on Canada Bread (Bon Matin, POM, Vachon, Villaggio, Dempster’s, etc.) for its participation in a scheme implemented to increase the price of sliced bread.
The Competition Bureau then clarified that it was continuing its investigation into price-fixing allegations targeting other companies including Metro, Sobeys, Walmart, Giant Tiger and Maple Leaf Foods.
At the time of publication, it had not yet been possible to obtain a reaction from Loblaw and Weston.
George Weston is Loblaw’s largest shareholder.