Claims Open for Canadians in $500 Million Bread Price-Fixing Settlement

A Loblaws grocery store is shown at a Bowmanville, Ont., shopping centre on Feb. 28, 2023. The Canadian Press/Doug Ives

Canadians are now able to submit a claim as part of a $500 million class-action settlement related to alleged industry-wide price fixing of packaged bread.

Strosberg Wingfield Sasso LLP and Orr Taylor LLP announced on Sept. 11 that the claims process in the approved settlement involving Loblaw Companies Ltd. and its parent company, George Weston Ltd., is now open. The law firms are counsel in the class-action lawsuit against Loblaw and several other grocers, including Sobeys and Walmart Canada.

“This resolution provides Canadian consumers with monetary relief they deserve,” Orr Taylor LLP partner Jim Orr said in a Sept. 11 statement.

Compensation is available for Canadian residents who purchased packaged bread products for personal use between Jan. 1, 2001, and Dec. 31, 2021. Those looking to submit a claim form must do so by Dec. 12. Proof of purchase is not required to submit a claims form.

The packaged bread products that were part of the alleged scheme include bagged bread, buns, rolls, bagels, naan bread, English muffins, wraps, pita, and tortillas.

“We encourage Canadian consumers who purchased Packaged Bread to apply for compensation under the settlement,” Strosberg Wingfield Sasso LLP managing partner Jay Strosberg said in a Sept. 11 statement. “We have designed a claims process that is straightforward and easy for consumers to use.”

Eligible consumers who resided anywhere in Canada, except for Quebec, on Dec. 31, 2021, can visit the Canadian Bread Settlement website to file a claim for compensation. Meanwhile, eligible consumers who resided in Quebec on Dec. 31, 2021, can visit the Quebec Bread Settlement website to file a claim.

The law firms say that 78 percent of the settlement funds are allocated to the Ontario class action, while 22 percent are allocated to the Quebec class action.

Additionally, 99.5 percent of the settlement funds are allocated to individual consumers, while 0.5 percent is allocated to businesses and other entities who purchased packaged bread for resale.

Since the settlement funds allocated for businesses and other entities are “a relatively small amount of the settlement” the funds will be “retained in trust,” according to the law firms. The courts will determine how those funds will be distributed “at a future date.”

Loblaw Card Program

In May, Ontario Superior Court Judge Ed Morgan approved the $500 million settlement, which includes a combined $404 million to be paid by Loblaw and George Weston, after they were accused of engaging in an industry-wide scheme to fix the price of packaged bread products. The companies agreed to the settlement in January.

The remaining $96 million in the settlement was previously accounted for through a gift card program that Loblaw began in 2018 and ran through 2019. The Loblaw Card Program aimed to compensate customers with $25 gift cards after they paid roughly $1.50 more per loaf of bread as a result of the alleged price-fixing scheme.

Consumers who previously received a $25 Loblaw gift card as part of the Loblaw Card Program are able to submit a claim for additional compensation, but the law firms say they will only be paid an incremental amount on top of the $25 if there are sufficient settlement funds available.

The settlement agreement was also approved by the Superior Court of Quebec in July.

The class action first began in October 2017, after which Loblaw and George Weston admitted to participating in the price-fixing scheme for at least 14 years, the law firms say.

The class-action lawsuit is continuing against the remaining defendants, including Metro, Sobeys, Walmart Canada, Canada Bread, and Giant Tiger, who have denied their participation in the alleged price-fixing scheme.

The Canadian Press contributed to this report.