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House of Commons committee recommends feds tackle ‘excessive’ profits in food sector

The House of Commons committee studying food prices recommends that the federal government consider policies to tackle “excessive net profits” in the food industry.

In a report, the committee detailed its research into the causes of food inflation and insecurity in Canada, including the high-profile testimonies it drew from grocery executives.

The report lists a number of recommendations that range from lowering the barrier to entry for new companies to Canada, to making legislative changes to strengthen competition law regarding mergers.

The committee is also recommending that the government discuss with the provinces and territories legislation to make the grocery code of conduct mandatory.

That recommendation comes on the heels of an announcement from Loblaw that it plans to sign on to the code after months of pressure on the country’s largest grocer to participate.

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

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

The Canadian Press

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