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Competition Bureau Opens Probe of Minimum Advertised Pricing in Grocery Sector

The bureau is seeking evidence to determine whether advertised-price floors are keeping lower advertised deals out of reach for shoppers.

Overview

  • The Competition Bureau has launched an active investigation into minimum advertised pricing (MAP), rules that set the lowest price retailers may show in flyers, apps or online listings.
  • MAP can be imposed by suppliers or agreed with retailers and can bar stores from advertising their lowest prices even if they could sell below that level at checkout.
  • The bureau is asking consumers, retailers and suppliers to come forward with examples and documents so it can assess how MAP affects price competition and access to deals.
  • Officials say MAP may be especially harmful in grocery retail because a small number of large firms dominate the market, which can make it harder for discount and new grocers to compete.
  • This probe is a focused strand of a broader competition review of Canada’s food supply chain and could inform future enforcement or policy recommendations if evidence shows harm to consumers.