Canadian consumers could soon receive compensation from class-action settlements stemming from allegations that Loblaw Companies Ltd. and its parent, George Weston Ltd., participated in a long-running scheme to fix packaged bread prices. While one major settlement has cleared a significant hurdle, court approval is still needed for a second case before any payments can be made.
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Here’s a quick breakdown of the situation:
- The Ontario court has approved a $500 million settlement reached with Loblaw and George Weston Ltd.
- A related class-action settlement in Quebec is pending court approval, expected around June 16, 2024.
- If both settlements are approved, eligible individuals and businesses across Canada could receive compensation.
- The specific amount each person might receive is currently unknown and depends on the total number of approved claims.
Understanding the Loblaw Settlements
Two class-action lawsuits were filed against Loblaw and George Weston Ltd. alleging their involvement in an industry-wide agreement to inflate the price of packaged bread. To resolve these claims, the companies proposed a $500 million settlement.
Earlier in June 2024, the settlement filed in Ontario received judicial approval. Justice Ed Morgan described the agreement as “excellent, fair, and in the best interest of class members.” The second settlement, covering Quebec residents, is scheduled for a court hearing for potential approval on June 16.
According to the settlement terms, if both provincial cases are approved, approximately 78 percent of the settlement funds will be allocated to the Ontario action, covering individuals and businesses in Ontario and the rest of Canada outside Quebec. The remaining 22 percent will go towards the Quebec lawsuit for eligible residents of that province. The total settlement amount includes a $96 million gift card program Loblaw previously implemented between 2018 and 2019. The remaining $404 million is the pool from which future claims will be paid.
Who Is Eligible for a Potential Payout?
Eligibility for compensation generally includes individuals and businesses across Canada who purchased packaged bread during specific periods.
For those covered by the Ontario class action (residents or businesses operating in Canada outside Quebec), eligibility applies if you purchased packaged bread between January 1, 2001, and December 31, 2021, and resided outside Quebec as of December 31, 2021. You must not be a defendant in the suit or a related party.
Quebec residents are eligible for the Quebec class action if they purchased at least one package of bread between January 1, 2001, and December 19, 2019.
Importantly, individuals who previously received the $25 Loblaw gift card offered in 2018-2019 are still eligible to participate in this new settlement. However, the $25 amount received via the gift card will be deducted from any potential compensation they receive from the new settlement.
The deadlines to opt out of the class actions have now passed in both Ontario and Quebec.
How Will Claims Be Made?
If both the Ontario and Quebec settlements receive final court approval, an online claims process will be established. This process will be accessible through dedicated settlement websites for Ontario and Quebec.
At this time, it is not possible to accurately estimate the specific amount of compensation any individual might receive. The final payout amount per person will depend on the total net amount of the settlement funds available after legal fees and administration costs, divided by the total number of approved claims submitted by eligible individuals and businesses.
The settlement agreement stipulates that 99.5 percent of the distribution will go to individuals, with the remaining 0.5 percent set aside for businesses and other entities that purchased bread for resale.
Video thumbnail discussing Loblaw's 0 million settlement and potential impact of the bread price fixing boycott
What Happens Next?
The most critical next step is the Quebec court’s decision on whether to approve its provincial settlement, expected around June 16, 2024.
Should the Quebec settlement be rejected, even after any potential appeals, both the Ontario and Quebec settlements would become null and void. In this scenario, the $404 million designated for future claims would be returned to Loblaw and George Weston Ltd. The $96 million already distributed via gift cards would not be clawed back. If the settlements fail, all parties would return to their pre-settlement “litigation positions.”
The proposed settlement with Loblaw and George Weston Ltd. saw relatively few objections (four) and opt-outs (475) compared to the estimated 20 million-plus class members, indicating broad acceptance of the terms among affected consumers.
It’s worth noting that this settlement resolves claims only against Loblaw and George Weston Ltd. The class actions are continuing against other defendants named in the lawsuits, which include Canada Bread, Sobeys, Metro, Walmart Canada, and Giant Tiger. The information gathered during the Loblaw/Weston settlement process is expected to be used in the ongoing cases against these other companies.
Video thumbnail about Canada Bread's denial of bread price fixing and statements regarding the case
In summary, while the Ontario court has given its nod to a significant settlement in the bread price-fixing case, the path to compensation for Canadians still depends on the upcoming decision from the Quebec court. Consumers should monitor official announcements regarding the Quebec approval and the subsequent launch of the claims process if both settlements are finalized.
