For more than two decades Canadians paid more for a staple food than they should have. Now, years after the bread price-fixing scandal first came to light, consumers are finally being offered compensation through a historic $500 million settlement.
A half-baked scheme that lasted for years
The bread price-fixing scheme stretches back to 2001 and is one of the largest competition cases in Canadian history. According to the federal Competition Bureau, several major players in the packaged bread market conspired to coordinate price increases, often using what insiders called the “7/10 convention.” Wholesale prices would rise by seven cents, followed by a 10 cent jump at the retail level.
The collusion is alleged to have continued until at least 2015, with some of the effects lingering as late as 2017. The practice kept bread, buns, bagels and other products artificially expensive, hitting the wallets of everyday Canadians.
In 2017, Loblaw Companies Ltd. and its parent, George Weston Ltd., admitted to taking part in the practice and sought leniency by cooperating with regulators. The admission came as a shock to many Canadians, particularly because bread is a household essential. As part of its mea culpa, Loblaw offered $25 gift cards to customers in 2018, a program that would later form part of the settlement value.
Other grocers and producers, including Canada Bread, Sobeys, Metro, Walmart Canada and Giant Tiger, have been named in ongoing civil actions. In 2023, Canada Bread pleaded guilty to four counts of price fixing and was fined $50 million, the largest price-fixing penalty ever imposed by a Canadian court.
A historic payout finally arrives
After years of litigation, Loblaw and George Weston agreed in July 2024 to a settlement valued at half a billion dollars. Ontario and Quebec courts approved the deal earlier this year.
Justice Ed Morgan of the Ontario Superior Court described the outcome as “an excellent and fair result for all concerned.” Of the total settlement, $404 million will be paid directly by the companies, while $96 million represents the value of the earlier gift card program.
The funds will be distributed after legal and court costs are deducted. Roughly 78% of the net settlement is earmarked for consumers in Ontario, with the remainder allocated to Quebec residents.
Jim Orr, a partner at Orr Taylor LLP and one of the lawyers representing consumers, told Global News that “this resolution provides Canadian consumers with monetary relief they deserve.”
How to get your slice of the settlement
Canadians who purchased packaged bread products for personal use between Jan. 1, 2001 and Dec. 31, 2021 are eligible to make a claim. That includes everything from loaves of sliced bread to bagels, wraps, pitas and English muffins.
Importantly, no proof of purchase is required. Consumers only need to confirm they bought bread during the settlement period. Claims must be submitted online by Dec. 12, 2025.
Residents of Quebec must file their claims through QuebecBreadSettlement.ca, while those in the rest of the country should use CanadianBreadSettlement.ca.
Those who already received a $25 Loblaw gift card are still eligible, though their final payout will be adjusted to reflect that earlier compensation. The amount each claimant receives will depend on how many people apply and the total approved claims.
The real cost of Canada’s bread scandal
The bread settlement highlights how anti-competitive practices in essential goods can quietly drain household budgets over time. While individual compensation may not be large, the scale of the case reflects the significant impact small, coordinated price increases can have on millions of consumers.
It also demonstrates the role of class action lawsuits in holding corporations accountable when consumer harm is widespread but difficult to measure. For Canadians, the practical takeaway is simple: if you bought packaged bread in the past 20 years, you will likely qualify for a share of the settlement.
The claims process will remain open until late next year, with distribution expected to begin after that deadline.
Sources
1. Global News: $500M bread price fixing settlement now open for Canadians to claim, by Sammy Hudes (Sept. 11, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.