TORONTO, June 26, 2026 – Canada’s Competition Bureau has launched a nationwide review of competition in the food supply chain, covering food production and processing, transportation and distribution, and retail pricing. The review will focus on membership discounts, algorithmic pricing, shrinkflation and reductions in product quality. Households facing rising food costs, independent grocers, farmers and food supply businesses should note that the public can submit comments until July 31. The review will not immediately reduce food prices, and a final report with policy recommendations is expected in spring 2027.
The Competition Bureau said food prices in Canada have risen significantly in recent years, continuing to increase the cost of living. Food prices are affected by several factors, including agricultural production, labour, transportation, energy, weather, exchange rates and international markets. The level of market competition may also affect prices, product selection and quality.
The review will cover the entire food supply chain from the point of production to retail shelves, including agricultural and fishery production, food processing and packaging, warehousing and transportation, wholesale distribution and retail sales. The Bureau will examine whether regulatory or commercial barriers prevent new businesses from entering the market, restrict the ability of small and medium-sized businesses to expand, or reduce consumer choice.
Retail practices are one of the main areas under review. The Bureau will study membership and loyalty programs, algorithmic pricing, shrinkflation and reductions in product quality to determine whether consumers can clearly compare prices and assess the actual value of products.
Shrinkflation generally refers to a product’s price remaining unchanged or increasing while its package weight, quantity or size decreases. For example, the packaging and price of a food product may appear largely unchanged, while the net quantity is lower than before. Consumers who compare only the price of each item may not notice that the actual price per gram, kilogram or litre has increased.
Product quality reduction occurs when the quantity remains largely unchanged, but the manufacturer reduces certain ingredients, changes the formula or lowers the product’s overall quality. The Bureau will examine whether these changes are clearly disclosed and whether consumers can still make effective comparisons among different brands and retailers.
Algorithmic pricing is another area included in the review. Some businesses use software, sales data and market conditions to automatically adjust product prices. The Bureau will assess whether these technologies improve operational efficiency or make pricing less transparent, and will examine their impact on retail competition.
Members of the public can submit comments through the Competition Bureau’s online channels until July 31. Consumers can report experiences involving changes in package quantities, restrictions tied to membership pricing, reduced product selection, price differences between stores, or a lack of competing retailers in their communities.
Farmers, processors, transportation companies, suppliers and independent retailers can also provide information about difficulties entering the market, securing retail shelf space, expanding their operations or working with large companies. The Bureau will also consult industry organizations, consumer groups and other stakeholders in the coming months.
The Competition Bureau emphasized that this is a market competition review, not an enforcement investigation into alleged misconduct by a specific company. Launching the review does not mean that any food producer, supplier or retailer has violated the Competition Act.
The Bureau does not have the authority to directly set supermarket prices, and the review will not immediately change household grocery bills. However, if evidence of possible legal violations emerges during the review, the Bureau may launch a separate investigation and take enforcement action.
The findings will be used to identify areas of the food supply chain that may restrict competition and to provide the government with recommendations on market entry, food production and processing, logistics and transportation, and retail regulations. The final report is expected to be released in spring 2027.（LJI by Yuanyuan）
