Canadian companies get involved in bread-price fixing scandal
Ottawa, Feb 1 (IBNS): Two Canadian companies have agreed to increase the whole sale prices of bread in a lockstep over a period of 14 years, media reports said.
The documents were accessed by Competition Bureau on Wednesday.
The bureau has alleged that the wholesalers of Canada Bread and Weston Bakeries, Weston, directly increased the bread-price without any consultation with the retailers.
The bureau's senior law officer, Simon Bessette's comment was quoted by Global News as, "The implementation of a price increase would be discussed at least 3-4 months in advance."
"I understand from [redacted] interview that the retailers would engage in back-and-forth communications involving Canada Bread and Weston Bakeries where the retailer would discuss specific dates and price points with respect to the increase."
The documents has alleged that the wholesalers and grocers have committed indictable offences under the Competition Act.
If the companies are found guilty, they can be fined up to $25 million and also could lead to a 14-year imprisonment.
"Further, the retailers demanded that the suppliers actively manage retail competition by co-ordinating retail prices for their respective fresh commercial bread products and ensuring pricing alignment amongst the retailers," the document's statement was quoted by Global News.
Former Competition Bureau commissioner, Melanie Aitken said: "If this investigation leads to the laying of charges –which it could – it would be the public prosecution service supported by the bureau and the results of their investigation that would pursue the companies and or the individuals."
"Nobody to date has ever spent any time in a jail cell in Canada [for price-fixing]" Aitken added.
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