Canada’s new Grocery Code of Conduct is here, but don’t expect any instant price drops
Canada’s Grocery Code of Conduct came into full effect as of Jan. 1, 2026. Governed by an independent organization, the code sets out guidelines for dealings between retailers and suppliers.
It’s intended to provide transparency and predictability in the relationship between food retailers and their suppliers. All five of Canada’s largest grocers — Empire, Loblaw, Metro, Walmart Canada and Costco Canada — have registered with the code.
The code sets out specific objectives: to contribute to a “thriving and competitive grocery industry,” promote trust between grocery value chain stakeholders, allow for informed business decisions and provide an effective and fair dispute settlement mechanism.
That dispute resolution mechanism, administered by the Office of the Grocery Sector Code of Conduct (OGSCC), is intended as a last resort. The possibility of mediation may encourage parties to resolve disagreements informally before they escalate to formal adjudication.
In addition, the OGSCC will publish an annual report highlighting key trends, challenges, recommendations for code improvements and anonymized case studies of disputes, without naming specific companies.
Public discussion of the code was often conflated with a desire to reduce food prices. While food price regulation is not part of the code, it has been raised in wider discussions about food price inflation.
Statistics Canada data shows that food prices continued to rise across the country in 2025. Prices increased by 3.4 per cent across Canada’s 10 provinces and three territories between May 2024 and May 2025.
Concerns about food price inflation have been longstanding. In 2023, the federal Standing........
