House committee tells Loblaw and Walmart to sign grocery code or risk legislation

The House of Commons committee studying food prices is urging Loblaw and Walmart to sign on to the grocery code of conduct or risk having it made law. The Loblaws flagship location on Carlton Street in Toronto on Thursday May 2, 2013. (THE CANADIAN PRESS/Aaron Vincent Elkaim)

The House of Commons committee studying food prices is urging Loblaw and Walmart to sign on to the grocery code of conduct or risk having it made law.

In a letter Friday, the committee told the chief executives of Loblaw and Walmart Canada that they believe the immediate implementation of the code is an essential step to tackle the issues facing the food industry.

Both Walmart and Loblaw have said they will not sign the code as currently drafted, warning it could raise prices for Canadians. 

Though the code is meant to be voluntary, some have called for it to be legislated to ensure all industry players sign on.

If either one of the retailers decides not to participate in the code, the committee says that will undermine its powers. 

Supporters of the code say it will help level the playing field for suppliers and smaller grocery companies. 

This report by The Canadian Press was first published Feb. 16, 2024