House of Commons committee recommends feds crack down on ‘excessive’ profits in food sector

The House of Commons committee investigating food prices is recommending that the federal government consider policies to tackle the problem of “excess net profits” in the food industry.

In the report, the commission detailed its research into the causes of inflation and food insecurity in Canada, including high-profile testimony from grocery store executives.

The report lists a number of recommendations, ranging from lowering the barrier to entry for new businesses in Canada to introducing legislative changes to strengthen competition law regarding mergers.

The committee also recommends that the government discusses legislation with the provinces and territories to make the Code of Conduct for Foodstuffs mandatory.

The recommendation comes after Loblaw announced it plans to join the code after months of pressure on the country’s largest food maker to take part.

The voluntary code aims to help level the playing field for smaller companies in the industry.

This report by The Canadian Press was first published May 24, 2024.

Canadian Press