NDP Leader Jagmeet Singh has called for “severe penalties” for corporations that engage in price-fixing following news that Loblaw Companies Limited and its parent company, George Weston Limited, have agreed to pay $500 million in penalties for their role in a bread price-fixing scheme.
“The rules should be there to protect Canadians, but the rules written by the Liberals and Conservatives by Justin Trudeau and Pierre Poilievre, have allowed big corporations to rip you off,” Mr. Singh said during a July 25 press conference.
“There are no real penalties. We want to change that. We want severe sanctions, severe penalties.”
Citing the settlement by the two companies, Mr. Singh said penalties for corporations engaging in price fixing should be tripled, indicating “$15 billion of fines would really deter these companies from ripping you off. That’s what we’re talking about.”
The NDP leader also proposed a price cap on essential food, saying grocers are making “record profits” while Canadians struggle to afford food.
The heads of Canada’s biggest grocery chains have pushed back on these allegations, saying their profit margins are very low.
“As unexpected as it may sound, grocery chains operate with extremely small profit margins, which means we have minimal influence on inflation,” Loblaws’s Mr. Weston told parliamentarian at a committee meeting last year.
“I’m putting forward changes today that would ensure Canadians aren’t getting ripped off at the grocery store and to bring food prices down for you and your family,” Mr. Singh said at the time.
Mr. Péladeau said Loblaw is instead partnering with Glentel, owned by Rogers and Bell. “It is imperative that action be taken to preserve a fair competitive environment in the telecommunications and grocery businesses, in the best interests of Canadians,” he said.
Back in September 2023, the Liberal government also threatened to tax grocery chains if they fail to reduce grocery prices.