NDP MP calls for Competition Bureau investigation into Loblaw discount reduction

B.C. NDP MP Alistair MacGregor is calling on the Competition Bureau to look into whether there are “possible anti-competitive practices” from Loblaw over its change to discounts on near-expiry items.

“I wish to draw attention to a concerning aspect highlighted in Loblaw’s statement, indicating that this shift in pricing strategy is in alignment with other major grocery retailers,” MacGregor wrote in a letter addressed to the Competition Bureau dated Jan. 17  seen by Global News.

Loblaw confirmed this week that it is reducing its discount on near-expiry items to 30 per cent from a maximum of 50 per cent.

A statement from Loblaw spokesperson Catherine Thomas says the change is being implemented to be more consistent and predictable in pricing.

She also pointed to the potential for more savings through the use of coupons and use of an app called FlashFood. FlashFood is a discount shopping app where customers can buy deeply discounted items based solely on a picture of the food.

However, Sylvain Charlebois, food researcher at Dalhousie University, says this statement implies Loblaw is matching 30 per cent near-expiry discounts offered by competitors.

“It basically implies that they’re just watching the competition and just matching their competition, which points to a much broader problem in the industry,” he said in a Jan. 16 interview with Global News.

On Jan. 16, the Competition Bureau told Global News it is aware of the change by Loblaw but says it would be inappropriate to comment. Its statement says that the Competition Act mandates that any work it does must be kept confidential until conclusions are reached. This includes whether an investigation exists.

Global News has reached out to the Competition Bureau for an updated