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June 22, 2020

Practical Law Canada has published a New Legal Update, which discusses the recent decision by the House of Commons Standing Committee on Industry, Science and Technology to invite representatives of three major Canadian grocery chains to “explain their decision to cancel, on the same day, the modest increase in wages for front-line grocery store workers during the pandemic, including how those decisions are consistent with competition law.”  Below is an excerpt with a link to the full Legal Update at Practical Law.

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On June 18, 2020, the House of Commons Standing Committee on Industry, Science and Technology (the “Committee”) voted unanimously to invite representatives of three major grocery chains, Loblaw Companies Limited, Metro Inc., and Empire Company Limited (parent of Sobeys), to “explain their decision to cancel, on the same day, the modest increase in wages for front-line grocery store workers during the pandemic, including how those decisions are consistent with competition laws”.

Canada’s Competition Act, R.S.C. 1985, c. C-34, contains provisions restricting agreements or arrangements between competitors. It should be noted that the Committee has no authority with respect to enforcing the Competition Act and that appearing before the Committee is voluntary. Enforcement of the Competition Act is the responsibility of the Commissioner of Competition (and may also occur through private action). Nonetheless, the Committee’s interest in this matter underscores that companies should be aware of the practical risk of public scrutiny regarding the perceived scope of the Competition Act.

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For the full Update, see: House of Commons Industry Committee Invites Grocery Chains to Explain Pandemic Pay Decision.

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