It’s ‘The Laws’ not “Lob Laws”
Loblaws and its parent company George Weston Ltd. have reluctantly agreed to shell out a staggering $500 million to hush up two explosive class-action lawsuits over an alleged bread price-fixing racket. But Loblaws wasn’t acting alone; they were just one of the many partners in crime, which also included Metro, Walmart Canada, Giant Tiger, Sobeys, and their shady supplier Canada Bread Co.
These lawsuits, representing all Canadians who bought packaged bread after Nov. 1, 2001, accuse the conspirators of masterminding a 14-year-long scheme from 2001 to 2015 to rob consumers by inflating bread prices. “We’re glad to sweep this scandal under the rug at both Loblaws and George Weston,” Loblaws CFO Richard Dufresne said with a sigh of relief during an earnings call.
The company announced that George Weston would cough up $247.5 million in cash, while Loblaws would contribute $156.5 million. And in a classic PR spin, Loblaws added another $96 million in credit, pretending it was compensation previously paid to customers under the Loblaws Card program. George Weston CEO Galen Weston somberly confessed, “This disgraceful behaviour should never have occurred.”
Sure Galen, as if you’re unaware, you corporate lackey!
Damage Control is Just a Smoke Screen
“On behalf of the Weston group of companies, we reluctantly acknowledge the price-fixing scandal we uncovered and confessed to in 2015,” said Weston, who is also Loblaw’s chairman, in a statement.
You can’t unearth what you already knew was there, Weston! This guy is out of his mind if he thinks we’re gullible enough to believe they were clueless. I call it absolute nonsense!
“We claim the privilege of serving Canadians from coast to coast. That privilege must be earned every single day, or so we say. Settling this matter was a necessary move to paper over past actions that betrayed our supposed values and ethical standards.”
Loblaws president and CEO Per Bank vowed that the grocery behemoth would search high and low for opportunities to win back Canadians’ waning trust. “Canadians rely on Loblaws for great value, and we promise to meet their needs and regain their trust wherever they decide to shop,” said Bank. “We will push ourselves to fulfill that promise,”
We don’t ‘rely’ on you, we have no choice but to use your crappy services because you squash out any competition that comes near you. You’re all corporate pigs and only care about the piles of money that you steal from your customers.
Loblaws reported a staggering 10% drop in its second-quarter earnings, attributing it to the lawsuit payments. However, Dufresne claimed that Loblaws customers wouldn’t see this reflected in higher prices. According to the plaintiffs’ lawyers, pending court approval, the settlement is set to be the largest antitrust lawsuit payout in Canadian history. “This marks a milestone in Canadian class action history and delivers a resounding message that consumer-harming behaviour won’t be tolerated,” said lawyer Jay Strosberg in a press release.
Oh, give me a break! We all know this is going to jack up grocery prices. And when they skyrocket, you’ll probably spin some ludicrous tale about climate change being the culprit. But let’s be real, it’s just a scheme to claw back that 10% hit you suffered.
The lawyers are now gunning for the other Weston companies allegedly entangled in the brazen price-fixing scandal, including Canada Bread, Sobeys, Metro, Walmart Canada, and Giant Tiger.
The Competition Bureau started probing this audacious scheme back in 2016. Weston Foods and Loblaws caught red-handed, had the nerve to admit their involvement in an “industry-wide price-fixing arrangement” but slyly slipped through prosecution by cooperating.
The companies shamelessly added at least $1.50 to the price of a loaf of bread, as per the bureau’s 2018 allegations based on court documents. Canada Bread, caught with its hand in the cookie jar, was slapped with a record $50 million fine last year after pleading guilty to four counts of price-fixing bread products under the Competition Act. The Competition Bureau noted it was the steepest fine ever slapped down by a Canadian court for price-fixing.
In my opinion, this is a joke. The fines should be in the billions because that’s the only amount that will make these corporate fat cats squirm. $500 million is pocket change to these bloated profiteers.
The Final Count
It’s clear that the $500 million payout is nothing more than a feeble attempt to placate the masses. These corporate giants gambled with our trust and our wallets for 14 long years, and now they want us to believe that they’ve magically turned over a new leaf. If Loblaws and George Weston Ltd. think this settlement is going to make us forget about their scandalous past, they’ve got another thing coming. They owe the public more than just cash—they owe us genuine respect and transparent business practices.
What do you think about this whole saga? Do you believe Loblaws and George Weston Ltd. have learned their lesson, or do you see this settlement as just another attempt to pull the wool over our eyes? Share your thoughts and let’s start a conversation on this despicable price-fixing scheme. Comment below!
