Loblaw Companies and parent company George Weston Limited have agreed to settle their part in class action lawsuits in Ontario and Quebec related to allegations of industry-wide overcharges on Packaged Bread purchased by Canadian residents across the country between 2001 to 2021.
However, the settlement is still subject to court approval hearings in Ontario and Quebec. Individuals who don’t want to be included in the legal action, need to opt-out or exclude themselves by April 25, 2025.
Objections and comments about this settlement also need to be submitted by the same date. The Distribution Protocol disclosed that the Courts will later decide how the settlement funds allocated for the benefit of businesses as well as other purchasers of Packaged Bread for resale will be distributed.
What actually happened?
The Competition Bureau started investigating the alleged industry-wide price-fixing scheme back in 2016. It’s alleged that the organization involved plotted to artificially increase the price of a loaf of bread between 2001 to 2015 by at least $1.50.
Canada Bread, Wal-Mart Canada, Metro and Sobeys, and Giant Tiger, are also accused in the alleged plot. Loblaw chairman Galen Weston apologized for their involvement in one of his statements.
He said, on behalf of the Weston group of companies, we are sorry for the price-fixing behaviour that we identified and self-reported in 2015. He added, “This should never have happened.”
Canada Bread pleaded guilty to four counts of price-fixing, but denied to take a part in the settlement. Metro and Sobeys have also not admitted any wrongdoing and denied all the allegations.
Who is Eligible?
The definition of the Loblaw and Weston settlement class members for the Ontario and Quebec class action is: All individuals who are living anywhere in Canada as of December 31, 2021 will be eligible for Canadian Bread Settlement.
And those who between 01 January 2001 and 31 December 2021, inclusive, directly or indirectly purchased Packaged Bread in the provinces that was produced or distributed by a settlement defendant.
Claim Process
If you are a qualifying person of Ontario and Quebec and want to participate in the Loblaw/Weston settlement then it is good news that you do not need to do anything at this time.
But if the Loblaw and Weston settlement is approved by the Courts, a further legal notice will be released highlighting next steps.
The Distribution Protocol provides that individuals who bought Packaged Bread for their personal use between the settlement class period can claim compensation through a claims process that will be established after the settlement final approval.
How much you get?
The exact settlement payout amount is not disclosed yet by officials but it is expected that if the settlement is approved by the court then two companies will pay up to $404 million cash. The settlement funds will be utilized to pay the court-approved expenses, to the plaintiffs.
The remaining $96 million was already paid by the Loblaw Card Program in 2018, which allowed Canadians to get a $25 Loblaws gift card as compensation. The exact payout amount also depends on the total number of filed or approved claims. The settlement funds will be allocated 78% for the Ontario class action and 22% for the Quebec class action.
After deduction of court-approved fund entitlements, lawyer’s fees and administration costs, the remaining settlement funds will be delivered in accordance with the provisions of the Distribution Protocol approved by the Courts.
When will you get?
It is important to know that the Loblaw/Weston settlement needs to be approved by the Courts in Ontario as well as Quebec before it can become effective.
The Canadian Bread Settlement Approval Hearing in Ontario is scheduled for May 5, 2025 whereas the Quebec Settlement Approval Hearing takes place in Montreal on June 16, 2025.
On the final approval hearing, the court will decide whether the settlement is fair, adequate, and reasonable or not. After the final approval hearing, if the settlement becomes final then qualifying individuals will be able to get their settlement payout amount within a few weeks to months.