It might be the best thing since the alleged artificial price increase on sliced bread.
As of Thursday, the claims process is now open for Canadians seeking their share of a $500-million settlement in a class-action lawsuit related to the alleged industry-wide price fixing of bread.
Any eligible Canadian resident who purchased packaged bread for their personal use — including bagged bread, buns, rolls, bagels, naan, English muffins, wraps, pita and tortillas — between 2001 and 2021 can claim compensation from the national settlement reached with Loblaw Companies Limited, and parent company George Weston Ltd.
Forms can be found online at CanadianBreadSettlement.ca for those living anywhere in Canada outside of Quebec as of Dec. 31, 2021, and at QuebecBreadSettlement.ca for those living within that province on that date. Claims have to be submitted by Dec. 12, 2025, both websites note.
“It’s been a long-time coming,” Jay Strosberg, a lawyer representing plaintiffs in the class-action lawsuit, told CBC News.
Strosberg says he hopes they’ll get millions of people claiming, and this will likely mean it takes several months for people to get their share, but that whatever the wait is, “it will be worth it, hopefully.”
Jay Strosberg, a lawyer representing plaintiffs in the class-action lawsuit accusing Loblaw of engaging in a bread-fixing scheme, reacts to the approval of the $500-million settlement.
About the class action
The class-action lawsuit accused Loblaw Companies Limited and its parent company, George Weston, of engaging in an industry-wide scheme to fix the price of bread. The plaintiffs alleged companies participated in a 14-year industry-wide price-fixing conspiracy between 2001 and 2015, leading to an artificial increase in packaged bread prices.
There are two settlement classes: one in Ontario, for all of Canada outside Quebec, and one in Quebec for Quebec residents only.
The settlement was subject to court approval in both Ontario and Quebec and would only become effective if approved by both courts, notes law firm Strosberg Wingfield Sasso LLP on its own bread class action website.
In May, Ontario Superior Court Judge Ed Morgan approved the $500-million settlement in the case, which includes a combined $404 million to be paid by Loblaw and George Weston after they were accused of engaging in an industry-wide scheme to fix the price of bread.
The remaining $96 million is accounted for through a gift card program Loblaw began in 2018 and ran through 2019 in hopes of making amends with customers who paid about $1.50 more per loaf of bread.
The Superior Court of Quebec approved the settlement in July and issued its judgment on Aug. 11. Now that the 30-day appeal period expired, people can make claims, Strosberg explained.
Strosberg added it’s the largest price-fixing class action in Canadian history.
“It’s a big deal,” he said.
Canada Bread must pay a $50 million fine for being part of a scheme to fix the price of bread in Canada over 14 years. It’s the highest fine the Competition Bureau has ever levied. Andrew Chang explains how the scheme worked, and why this may only be the beginning.
‘The action continues’
While the price-fixing allegations targeted other major grocers, including Sobeys, Walmart, Giant Tiger and Metro, only Loblaw and its parent company have agreed to a settlement. The others have denied the allegations.
Canada Bread, which is also named as a defendant, was fined $50 million in June 2023 after pleading guilty to four counts of price-fixing bread products under the Competition Act.
But that fine went to the government, not to consumers.
“The action continues against everybody else. This is the first instalment,” Strosberg said.
Customers who bought bread between January 2001 and December 2021 and did not previously take a gift card from Loblaw will eventually receive up to $25. If there is still money left over after that distribution, funds will be divided among anyone who claimed the gift card.
