We learned this week that the grocery basket will cost $1,000 more next year. For a family of four, it was $13,801 in 2021 and it will be $16,288 in 2023. A 23% increase in 3 years is huge. Why such an increase?
Are grocers inflating prices?
The major Canadian grocers who act as a powerful oligopoly swear that they have nothing to do with it, while their fabulous profits are highly suspect. What is unfortunate is that these large chains refuse to open the books so that Canadian consumers understand where these profits are coming from.
The members of the House of Commons, under the initiative of the NDP, therefore decided to investigate. Two surveys have just been launched on the profits of grocery stores. It is hoped that these investigations will get to the bottom of things.
Cartels
Another lead: sectoral cartels.
France and its Competition Authority should serve as a model for Canadian regulators in the quest for truth. Thanks to its leniency program, it has fined several large companies.
Here are some examples of dismantled cartels in France that should inspire. It should be noted that each of these investigations showed that collusion made it possible to inflate prices to the detriment of consumers.
The biggest strike was against the cartel of manufacturers of hygiene and cleaning products: sanction of 1 billion euros against companies that also operate in Canada (Colgate-Palmolive, Unilever, Procter & Gamble, SC Johnson , Gillette, L’Oreal, etc.). The Authority has also tackled cartels of canned vegetables, compotes cartel, ham and charcuterie cartel, cartel of detergent manufacturers, and so on.
Special Committee
If cartels exist in such large numbers in France, it would be surprising if Canada were spared. One wonders if a major Gomery-style special commission of inquiry would not be appropriate in order to really understand what is going on with the awarding of prizes to which citizens are held captive to provide for their basic needs.