Canadians who’ve been slicing into bread from Loblaw stores could soon see some extra cash, as Loblaw Companies Ltd. and its parent, George Weston Limited, have inked a $500-million deal to settle a class-action lawsuit over a decades-long bread price-fixing scheme. Announced last year, the settlement’s now official—but it’s still waiting for the green light from courts in Ontario and Quebec, with Quebec’s approval hearing set for June 16 in Montreal.
“This hefty payout is a win for fairness after years of negotiations,” said Michael Vathilakis, co-founder of Renno & Vathilakis Inc., in a statement. “It’s a solid outcome for Canadians.” The deal dishes out $404 million in fresh funds to split between affected shoppers and the courts, on top of $96 million already handed out via Loblaw’s 2018 gift card program.
The saga kicked off in 2016 when the Competition Bureau launched a probe into bread price-fixing. From 2001 to 2015, Loblaw and George Weston were accused of jacking up prices by about $1.50 per loaf across stores like No Frills, Real Canadian Superstore, Valu-Mart, Your Independent Grocer, and Fortinos. The fix wasn’t just bread—buns, bagels, naan, English muffins, and tortillas got caught in the mix too.
Loblaw and George Weston fessed up in 2015, spilling the beans to the Bureau to dodge criminal charges in an “industry-wide” plot. Back in 2018, Loblaw tossed $25 gift cards to customers as a mea culpa. But the fallout didn’t stop there—anti-poverty advocate Irene Breckon from Elliot Lake, alongside Ontario plaintiffs Marcy David, Brenda Brooks, and Andrew Balodis, fired up the class-action suit. Canada Bread, another player, copped to four price-fixing counts and paid a $50-million fine, though it denies a broader conspiracy. Sobeys, Metro, Walmart Canada, and Giant Tiger—also named—say they’re innocent and are still fighting the claims.
So, when do you get your slice? Vathilakis says 99.5% of the net $404 million is earmarked for consumers who bought packaged bread, but the payout size hinges on how many file claims. The claims process is still baking—no start date yet. Businesses that resold Loblaw bread during those years are also in line for a cut, pending court rulings. In Quebec, if you bought bread from 2001 to 2021, you’re automatically in unless you opt out by May 30.