The Competition Bureau has launched an investigation into the use of minimum advertised pricing policies in the grocery sector, rules that can prevent retailers from advertising their lowest prices.
The watchdog is examining whether the policies make bargains harder to find, blunt competition among grocers, and put new and discount stores at a disadvantage.
“Canadians expect grocery stores to be able to advertise their best deals,” Jeanne Pratt, the agency’s interim competition commissioner, said in a statement Monday.
“We’re concerned that policies that prevent this make it harder for grocers to compete, and for consumers to access lower prices,” she said. “At a time when food affordability remains an important concern for Canadians, we want to hear about how these policies are affecting grocery prices and consumer choice.”
Minimum advertised pricing policies set a floor on the price retailers can advertise a product, although they may still be able to sell it for less.
In the retail industry, suppliers may use advertised price rules to protect a brand’s image, encourage retailers to provide better service or prevent some retailers from benefiting from the promotional efforts of others.
The Competition Bureau gave a fictional example of a supplier setting a minimum advertised price of $2.99 for a package of pasta. A discount grocer could sell it for $1.99, but could not advertise the lower price, making the deal harder for shoppers to find and potentially discouraging the retailer from offering it in the first place.
“Suppliers will have an interest in, for a variety of reasons, keeping a sort of minimum price for their goods that can be advertised,” said Keldon Bester, executive director of the think tank Canadian Anti-Monopoly Project.
“These practices can soften the price signals that drive competition, particularly for discount operators,” he said. “They can lead to a homogenization of prices.”
The bureau is asking industry participants and consumers to come forward with evidence about minimum pricing use.
It says the information it receives will support its investigation and inform its examination of competition across Canada’s food supply chain.
In June, the agency launched an investigation of competition in the grocery sector, including potential problems in production, processing, transportation, distribution and pricing.
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Brett Bundale, The Canadian Press
This report by The Canadian Press was first published Sept. 28, 2026.
