Winnipeg shelter, food bank starting to reap Loblaw card rewards after price-fixing scandal

Winnipeg charities say they're starting to receiveLoblawgift cards promised to them bythe public, after the grocery company started sending them out as an apology for its role in a bread price-fixing scandal.

Siloam Mission says it'sreceived several of the $25 cards, and many people have contacted the shelter on social media to ask how they can donate theirs.

"It looks like we've got about a half dozen of them that we've been processing just today," said Siloam spokesperson Luke Thiessen. "We're starting to see them come in and we love to see that.

"The cost of those cards is quite close to the cost for us to feed and house someone in our shelter for one day," he added. "It's the cost of three meals and the cost of a shelter stay here."

Winnipeg Harvest says it has received about$800 worth of cards so far.

"The gift cards that we do receive, they will be going towards the purchase of baby formula for our First Steps program," said ColleenMcVarish, spokesperson for Winnipeg Harvest.

Baby formula is a rarely donated item and the food bank often has to purchase formula outright, she added.

The food bank has also told people they can donate the value of the gift card instead of sending it in, as a cash donation is tax deductible, while the card donation is not.

The cards all come with an activation process, said McVarish, and Harvest volunteers are happy to activate the cards.

Price fixing

In December, Loblaw and its parent company, George Weston Ltd., confessed to taking part in what the Canadian Competition Bureau alleges wasan industry-wide bread price-fixing schemethat involved five major grocers and two bakeries.

They all allegedly agreed to bump up the price of bread byat least $1.50 over the course ofabout 14 years, starting in 2001.According to Statistics Canada, Canadian households have spent an average of $260 a year on bread since 2010.

To make amends, the company offered free $25 gift cards to every Canadian who signed up for one. While it's unknown how many Canadians have signed up for the cards, the company has begun shipping them.

When the free cards were announced, many people pledged on social media to send their cards to local charities and food banks.

Despite the free cards, there are still several class-action lawsuits pending, including a $1-billion class-action lawsuit.

There have also been concerns about privacy after Loblawstarted asking Canadians for more information after signing up for the card.

Canadians have until May 1 to sign up, with cards delivered six to 12 weeks later, said Loblaw.

A request for comment from Loblaw was not returned by press deadline.

Bread price-fixing

7 years ago

Duration 2:01

CBC's Jacqueline Hansen with the latest in the bread price-fixing scheme