As the clock ticks down, the opportunity for Canadians to participate in the $500-million class-action lawsuit against Loblaw Cos. Ltd and its parent company, George Weston Ltd, is rapidly approaching. The lawsuit, which alleges the companies were involved in an industry-wide scheme to fix the price of bread, has set a final deadline for filing claims. This significant legal action offers compensation to customers who were potentially overcharged for bread purchases over a twenty-year period.
Details of the Loblaw and George Weston Lawsuit
According to court documents, the lawsuit accuses Loblaw and George Weston Ltd of manipulating the price of packaged bread between January 2001 and December 2021. The Ontario Superior Court approved a settlement of $500 million in May 2021. Of this sum, $404 million will be paid by Loblaw and George Weston, with the remaining $96 million accounted for through a gift card program initiated by Loblaw in 2018 and ran through 2019. This was an attempt to reconcile with customers who were believed to have paid approximately $1.50 more per loaf of bread.
Eligibility for the Settlement
Canadians who bought packaged bread during the specified period and did not previously accept a Loblaw gift card are eligible to submit an online claim for the settlement. Interestingly, no proof of purchase is required to file a claim, according to the settlement’s online page. Claimants could expect to receive a $25 payment within six to 12 months after the deadline.
Distribution of the Settlement Fund
Once legal fees and court expenses are deducted, 78% of the settlement fund is slated for distribution to shoppers in Ontario. The remaining amount is earmarked for Quebec residents. If there is any leftover money after this distribution, it will be divided among those who claimed the gift card.
The Bread Price-Fixing Saga
The settlement has brought closure to a long-running saga that cast a shadow over some of Canada’s largest grocers, including Metro, Sobeys, Walmart Canada, Canada Bread, and Giant Tiger. While these grocers denied their involvement in the alleged bread price-fixing scheme dating back to 2001, Loblaw and George Weston admitted to the Competition Bureau in 2015 that they were part of the practice. However, this admission was not made public until 2017.
The Path to Settlement
Following the publicization of their admission, Loblaw and George Weston offered a $25 gift card to customers as compensation. However, this gesture did not appease shoppers, leading to the filing of a Quebec class action against them and other grocers in December 2019. The Superior Court of Quebec approved the national settlement agreement in July, with the deadline set for Friday. The Ontario class action, filed by Strosberg Wingfield Sasso LLP in December 2021, reached its $500-million settlement last year.
In conclusion, the upcoming deadline marks a significant milestone in this case, offering some recompense to Canadians who fell victim to the alleged price-fixing scheme. It serves as a reminder of the importance of corporate transparency and ethical business practices.
