grocery prices ontario

Ontario is introducing new laws to stop grocery stores from price gouging

A trip to a supermarket virtually anywhere else in the world really puts into perspective how preposterous grocery prices across Canada have become, but the Government of Ontario is promising some additional protections to consumers in the form of new legislation.

The province announced on Monday that measures are in the works to better prevent retailers across all industries from engaging in practices such as price gouging as shoppers continue to struggle with the recent record inflation for food, as well as other goods and services.

If passed, the Better for Consumers, Better for Businesses Act will double the maximum fines faced by companies found guilty of price gouging and other offences, enhance the province's oversight and enforcement in the retail sector, and otherwise prohibit unfair business practices, such as locking customers into membership-based contracts or changing contract terms.

The province notes in its release about the move that existing consumer protection rules have not been updated or even reviewed since the early 2000s.

"People deserve to shop with confidence when spending their hard-earned money on goods and services at home, online and in their communities," Ontario Minister of Public and Business Service Delivery Todd McCarthy said in sharing the news.

"By updating rules that protect them when they are shopping or entering contracts with businesses, we can better adapt to today's evolving marketplace and build a smarter, safer, and stronger economy."

While the proposed amendments seem more focused on residents' vulnerabilities while signing on for app-based loyalty programs and long-term agreements for things like HVAC systems, hopefully modernizing and tightening up the laws will help deter all bad actors.

This is especially relevant to the grocery industry, which has been proven to lack fair competition and whose major players have been accused of profiting off inflation, as well as found guilty of colluding to artificially increase pricing in the past.

Lead photo by

Kim Yokota


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