Canada’s long-promised grocery code of conduct officially comes into force Thursday, marking the full rollout of a voluntary framework meant to govern relations between powerful grocery chains and their suppliers.
The Canadian Press reports that the code, which applies to grocers, wholesalers, suppliers, and primary producers, is being sold as a way to inject “fairness” and “transparency” into an industry dominated by a handful of corporate giants.
It sets out rules around fees, penalties, contract changes, and dispute resolution — practices that for years have been a sore point for suppliers who say they’ve been squeezed by unilateral charges imposed by large retailers.
As of Jan. 1, the code is fully operational, including its adjudication and dispute resolution process.
Grocers and suppliers can now file formal complaints with the Office of the Grocery Sector Code of Conduct, which will also begin collecting annual membership dues from participating companies.
Beginning in 2026, the office plans to publish annual reports outlining sector trends, systemic problems, and proposed reforms.
The push for a grocery code gained momentum after supplier complaints about so-called “contentious fees” reached a boiling point in 2020.
Those tensions were amplified by years of food inflation following the COVID-19 pandemic, as Canadians watched grocery bills soar while corporate profits held steady.
While the code does not regulate prices — a fact its architects are quick to emphasize — it nonetheless became a political lightning rod amid mounting public anger over affordability.
Participation is technically voluntary, but Ottawa made its expectations clear. When some major grocers dragged their feet, the federal government warned it would impose a mandatory regime if the industry failed to fall in line.
That pressure appears to have worked.
Canada’s five largest grocery players — Loblaw, Empire, Metro, Walmart Canada, and Costco Canada — have now formally signed on.
Former Empire CEO Michael Medline was the first high-profile grocery executive to publicly call for a code, arguing it would help level the playing field between retailers and suppliers.
Medline has consistently cautioned that the code is no cure-all, but suggested it could eventually lead to lower prices, shorter supply chains, and more consumer choice.
Still, expectations should be tempered. The code does not set prices, dictate shelf space, or restrict commercial negotiations.
Its reach is limited to conduct, not costs — a distinction that critics say will blunt its impact for consumers feeling the pinch at the checkout.
Canada is late to the game. Similar grocery codes have existed for years in jurisdictions such as the United Kingdom and Australia.
Whether Ottawa’s version delivers meaningful change — or simply provides political cover amid persistent food inflation — remains to be seen.
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