Here's how to get $25 from Loblaws after it admitted to fixing bread prices - Macleans.ca
 

Here’s how to get $25 from Loblaws after it admitted to fixing bread prices

What you need to know about the ‘meaningful’ $25 gift card offer


 

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UPDATE: Registration for the Loblaw gift card has opened. Here’s more information on whether you’re eligible and how to sign up

Loblaw Companies Ltd. is offering customers a $25 gift card as a goodwill gesture after admitting the company participated in an industry-wide bread price-fixing arrangement.

How to sign up to receive it

Customers can visit LoblawCard.ca and enter their email address to be notified once registration opens. The company expects registration to begin on Jan. 8. Full details will follow. Registration closes May 8.

MORE: Loblaws could owe you much more than $25

Who is eligible

Visitors to the site will have to declare that they are the age of majority or older. The age of majority is 18 in Alberta, Manitoba, Ontario, P.E.I., Quebec and Saskatchewan. It is 19 in B.C., New Brunswick, Newfoundland, Nova Scotia and the three territories.

They will also have to declare that they bought certain packaged bread products at one of the eligible banner stores in Canada before March 1, 2015.

Why the $25 amount

“This is our effort to respond directly to our customers, acknowledging ultimately our specific accountability in what was an industry-wide arrangement,” said Galen G. Weston, CEO. “We’re trying to go directly to our customers and let them know how serious we’re taking the situation,” he added.

Further comments: “This conduct should never have happened.” We hope that they’ll see it as a meaningful amount that demonstrates our commitment to keeping their trust and confidence.”

READ: What to know about Loblaw’s new PC Insiders loyalty program

How much Loblaw expects this will cost

The company expects three million to six million people will receive the gift card. The company says it expects to take a charge of between $75 million and $150 million.

Might Loblaw have to pay up more?

Class-action lawsuits have been initiated against the parties involved in the price-fixing arrangement. Loblaw said it’s too early to predict the outcome of any such legal actions but said it would update investors when it had a handle on those potential costs.

Could other companies step forward with similar offers?

Confirmed parties who were part of the investigation include Canada Bread, Sobeys and Metro Inc. The companies say they are cooperating with investigations by the Competition Bureau. No consumer compensation has been offered.

 

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—with files from Maclean’s staff


 

Here’s how to get $25 from Loblaws after it admitted to fixing bread prices

  1. The lob law Web page asks for an email address to be notified once registration begins. Anyone know how folks without email can register?

  2. Loblaws need some better PR on this.
    An internal audit at Loblaws found that its bakery division was involved in price fixing (possibly even led it?). Loblaws’ senior management did the right thing by shutting this illegal activity down in its own shop and then notifying the Competition Bureau. So, in fact, Loblaws ended an illegal activity going on within the food industry. And they obviously have some smart lawyers. By ratting out this illegal industry issue, they gained immunity from any charges.

  3. Agreed that 25.00 seems to be an inadequate sum. Perhaps a nice monetary donation to each individual food bank throughout the country would be in order and good for some forgiving PR

  4. Some of the wheat farmers I talked to, a few years back, complained about the price disparity in the stores.

    How about trying to write a story on that angle?

    I’m really pissed. What other food prices are they manipulating? Is the manipulation a result of a single supply system? Free market run amok?