Metro is taking legal action 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 context of the class action on bread price fixing, the application for authorization of which had been filed in Ontario in 2017 on behalf of consumers and accepted by the Ontario Superior Court in 2021.
This collective 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 would be filed with the court “in a few weeks.”
The action targets only Loblaw and Weston, because Marie-Claude Bacon claims 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 notably refers to a press release published in 2017 where Loblaw and Weston claim that participants in a bread price-fixing agreement included Loblaw and George Weston’s Bakeries division, but also “other large retailers”.
The senior director of the Agri-Food Analytical Sciences Laboratory at Dalhousie University, Sylvain Charlebois, 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. »
Stratagem
After working 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 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 intended to increase the price of sliced bread.
The Competition Bureau then clarified that it was continuing its investigation into price-fixing allegations against other companies, including Metro, Sobeys, Walmart, Giant Tiger and Maple Leaf Foods.
Called for comment, Loblaw’s vice-president of communications, Catherine Thomas, was firm and direct. “Metro’s allegations are simply ridiculous and completely false, as will be clearly demonstrated in court. »
George Weston is Loblaw’s largest shareholder.