I’m just going to play this bread story straight because half-baked puns are the worst.
Canada’s largest grocer, Loblaw Cos. Ltd., and its parent company, George Weston Ltd., agreed to pay $500-million to settle two class-action lawsuits over their role in a scheme to fix bread prices in Canada from 2001 to 2015. Below, we have more from the reporter who broke the story on what comes next – and what steps consumers can take.
Up top
- Wildfires: Canadian National Railway Co. suspended freight service on its mainline through Jasper, Alta., in response to the wildfire that has devastated large parts of the mountain town. But the Trans Mountain pipeline system, which carries up to 890,000 barrels per day of refined and crude products directly through the region, continues to operate. Jeffrey Jones and Emma Graney report.
- Appointments: Royal Bank of Canada has hired Manulife Investment Management’s Frances Donald as its new chief economist after Craig Wright retired last month. As one of Canada’s most prominent economists, Ms. Donald spent five of her eight years at Manulife as the company’s global chief economist and strategist. She will lead RBC’s economics and thought leadership team, supporting the bank’s efforts to use data, technology and artificial intelligence to identify long-term macro trends.
- Condo costs: More than 80 per cent of new condo investors in the Toronto region are finding the rental income from their units is not covering the increasing mortgage and other costs of owning the property. Rachelle Younglai writes about a new report showing how those losses are scaring away investors from buying preconstruction condos.
- Help needed: The overwhelming majority of Canadian households that rely on social assistance are living in poverty owing to insufficient payments, and the situation is worsening in many provinces because of the inflation crisis. This is a particular risk in provinces that don’t automatically adjust benefits for inflation to preserve their value, Matt Lundy reports.
In focus
The process for claiming a payout from the lawsuit settlement
A shopper leaves a Loblaws yesterday in Toronto.Nathan Denette/The Canadian Press
A settlement has been reached, but Canadian consumers will have to wait at least a few months before they will be able to apply to be part of the payout. Retailing reporter Susan Krashinsky Robertson outlines what you need to know:
What the agreement says
The companies have agreed to a total settlement of $500-million, $96-million of which has already been paid out in the form of $25 gift cards to its own grocery stores that Loblaw distributed in 2018.
How it will be paid out
The plan for disbursing the remaining $404-million is yet to be finalized, and is part of an agreement that will be put forward by the end of October, according to lawyers involved with the case.
“This behaviour should never have happened. We have the privilege of serving Canadians from coast to coast. That privilege needs to be earned each and every day. Reaching a settlement on this matter was the right thing to do in response to previous behaviour that did not meet our values and ethical standards.”
— Galen Weston, Loblaw chairman and George Weston chief executive
How a class-action settlement process works
The process typically begins with a public notice, which in this case will alert people who bought bread from the companies that they are entitled to participate. That means anyone who bought packaged bread from Loblaw-owned stores, or manufactured by former George Weston subsidiaries Weston Foods and Weston Bakeries, any time between 2001 to 2015.
What actions customers can take — and whether they need a receipt
Once the plan receives court approval, consumers will have the option to contact an administrator of the settlement funds to make a claim. Because very few people will have receipts dating back to 2015 or earlier, people will not have to have that kind of proof that they bought bread during that time to be eligible. They may have to sign a document saying that they made such a purchase.
Where leftover money would go
If any money remains at the end of the disbursement process, it will not go back to Loblaw or George Weston, but will be donated to charities such as food banks. The details of the charities will be settled as part of the agreement.
About the lawsuits
There are currently two class-action lawsuits in the matter, in Ontario and Quebec. Both were covered by the settlement agreement, which also applies to consumers outside of those provinces. The lawsuits are continuing against other defendants, which include Canada Bread, Metro Inc., Sobeys Inc., Walmart Canada and Giant Tiger Stores Ltd. Other retailers named in the suit have denied participating in the alleged scheme.
Up next
After this settlement, lawyers are setting their sights on other industry players. An important part of the agreement is a commitment by Loblaw and George Weston to co-operate with the plaintiffs by providing information. The lawyers say that will strengthen their case against other defendants.
Charted
The lookout
On our radar and reading list
Zoom in: Earnings include Canfor Pulp Products, George Weston, Bristol-Myers Squibb, Southern Copper, Colgate-Palmolive, 3M, Royal Caribbean Cruises.
Zoom out: Today’s economic reports include Canadian budget balance; U.S. personal spending and income; U.S. core PCE price index for June; China industrial profits, Japan CPI, European Central Bank three-year CPI expectations; France and Italy consumer confidence.
Making bread: At a G20 meeting, Brazil’s idea to tax the world’s super-rich was “well received,” and is expected to yield a joint statement to ... someone. Billionaires in the year 2076: You’re on notice.
Making bread: You can now become a certified Bread Sommelier. At the Academy of the German Bakery Trade Weinheim, “you will work intensively with bread for around 10-11 months” before receiving your diploma.
Morning markets
Global stocks were on the rebound ahead of key U.S. price data that may signal the timing of the next Federal Reserve interest rate cut. Wall Street and TSX futures followed sentiment higher.
Overseas, the pan-European STOXX 600 was up 0.5 per cent in morning trading. Britain’s FTSE 100 gained 0.56 per cent, Germany’s DAX added 0.33 per cent and France’s CAC 40 advanced 0.89 per cent.
In Asia, Japan’s Nikkei closed 0.53 per cent lower, while Hong Kong’s Hang Seng climbed 0.1 per cent.
The Canadian dollar traded at 72.37 U.S. cents.