Expect to see more discounts, price freezes and price-matching campaigns by Canada’s major grocers.
Ottawa says it has secured initial commitments from the country’s five largest grocery chains to stabilize food prices.
Industry Minister François-Philippe Champagne told reporters Thursday that each grocer has identified initial actions.
“Starting soon, Canadians will be able to see a rollout of actions, such as discounts across a basket of key food products, price freezes, and price matching campaigns,” said Champagne.
“These measures will bring a much-needed more competitive marketplace and the winners of that are obviously Canadians.”
Prime Minister Justin Trudeau issued an ultimatum to the grocery chains in September: come up with ways to help stabilize food prices by Thanksgiving or face government consequences, including possible tax measures.
Champagne met with grocery chain representatives the following week and told them that Canadians were demanding action to address skyrocketing prices.
The minister announced Thursday that a new “Grocery Task Force” will be created within the Office of Consumer Affairs. They will monitor grocers’ commitments and investigate practices that hurt consumers, such as “shrinkflation.”
Champagne said the government will also accelerate work to establish a Grocery Code of Conduct and launch a food price data hub so Canadians can keep an eye on grocery and food prices.
The federal government is also working to modernize the Competition Act which, among other things, would give the Competition Bureau more power to investigate and take enforcement action when price fixing or price gouging occurs.
“This is the beginning of a number of actions that we want to take to help stabilize prices in Canada,” said Champagne.
“If these measures do not bring relief to Canadians, we are going to monitor closely and we are prepared to take further action.”
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