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"The Democratic National": The new team for monitoring the work of retailers does not fulfill the promises of the federal government.

"The Democratic National": The new team for monitoring the work of retailers does not fulfill the promises of the federal government.

By Mounira Magdy

Published: April 30, 2024

The federal government stated that the task force it established to monitor and investigate retail practices has not conducted any investigations and does not have the authority to take enforcement actions.

This acknowledgment came earlier this month in response to written questions from the New Democratic Party.

Minister of Industry François-Philippe Champagne stated last fall that the government would form a task force specifically for grocery stores within the Office of Consumer Affairs. He described it as a specialized team monitoring the work of grocers to stabilize food prices and investigate practices such as shrinkflation and disclose them.

The federal budget for April reiterated the message that the task force is monitoring the work of grocers regarding price stability, "in addition to investigating other price inflation practices in the grocery sector."

However, the task force appears to be less powerful than the government’s description suggests.

In February, New Democratic Party MP and agricultural food critic Alistair MacGregor requested information from the federal government regarding the task force and its investigations.

The response he received from the government this month stated: "Since the task force does not have the authority to take enforcement actions, it has not conducted any investigations."

MacGregor said in an interview, "Why, after making all these bold statements in October and raising the hopes of so many people that the government would actually do something, has the grocery task force not conducted any investigations?"

He added, "He was surprised by the disappointment when he discovered that the task force does not have the authority to investigate."

He continued, "I think this is a very weak excuse coming from the Liberals, as it effectively says that the task force does not have the authority to take enforcement actions, and therefore cannot conduct any investigations."

A spokesperson for Innovation, Science and Economic Development Canada provided information about the task force but did not directly answer questions directed to Champagne regarding why the government and the budget stated that the task force would investigate grocers' practices, or regarding MacGregor's criticisms.

Hans Parmar, the spokesperson for ISED, said in an email: "The task force is operational and consists of dedicated government officials studying retail and grocery issues with the goal of improving affordability for Canadians."

Parmar stated: "Its mandate and responsibilities include providing information, analysis, and recommendations; engaging other government departments as well as experts and external representatives; working with consumer groups conducting research and advocacy; and promoting information to consumers so they are aware of their rights and empowered to make informed choices in the marketplace."

MacGregor believes that the task force should conduct investigations even if it cannot take enforcement actions.

He said, "If it finds anything, it would almost certainly be able to raise that to the minister's office, which has a much larger and broader range of powers and tools that can be used, or at least be able to report to parliament and Canadians about what is actually happening in this sector."

The Liberal government has been pressuring major grocery stores in Canada to do something about rising food prices, having summoned them to Ottawa last fall and demanding they provide plans regarding the actions they were taking.

A committee of the House of Commons has also studied the issue of food prices, bringing in executives from grocery stores as well as industry experts before the committee to answer questions.

MacGregor noted that the committee is currently preparing its draft report on food price inflation and hopes to release it soon.

Although food price inflation has remained steadily moderate from its peaks exceeding 10%, prices are still much higher than they were just a few years ago, and frustration among Canadians regarding major grocery stores has risen.

There is also increasing pressure on grocers to sign a grocery code of conduct aimed at improving fair dealings in the industry, particularly between large grocers and their suppliers.

Last December, Loblaw and Walmart stated that they would not sign the code in its current form, as they believe it would raise retail food prices.

There has been talk of making the code mandatory as a result, with the House of Commons committee urging those who refuse to sign it or will recommend that federal and provincial governments adopt legislation to make it mandatory.

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