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Bread Price-Fixing Scandal: Ontario Judge Approves $500-Million Settlement
An Ontario judge has approved a $500-million settlement in a class-action lawsuit against Loblaw Cos. Ltd. and its parent company George Weston Ltd., marking a significant resolution in a long-standing bread price-fixing scandal.
The lawsuit alleged that the companies participated in an industry-wide scheme to artificially inflate the price of packaged bread, affecting consumers across Canada. The settlement includes $404 million to be paid by Loblaw and George Weston, with an additional $96 million accounted for through a gift card program Loblaw introduced in 2017 as compensation for its role in the price-fixing scheme.
Judge Ed Morgan, in his written decision, described the settlement as "excellent, fair, and in the best interest of class members." Once legal fees and other court expenses are deducted, 78% of the settlement funds will be allocated to residents outside Quebec, while 22% will go to those in the province.
Eligible individuals who purchased packaged bread for personal use or resale between January 2001 and December 2021 will receive compensation. This settlement marks one of the largest antitrust resolutions in Canadian history, reinforcing the importance of consumer protection and corporate accountability.
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