OTTAWA: In a landmark move for the Canadian retail sector, the much-anticipated “Grocery Code of Conduct” is set to take full effect tomorrow, January 1, 2026. Designed to bring order and transparency to the relationship between giant retailers and their suppliers, the code aims to curb unfair business practices and stabilize the national food supply chain. All of Canada’s major grocery players—including Loblaw, Walmart, Costco, Metro, and Sobeys—have officially signed onto the voluntary agreement after years of industry negotiations and government pressure.
The new framework establishes clear rules of engagement, primarily targeting the “hidden” fees, unilateral contract changes, and retroactive penalties that large chains have historically imposed on suppliers and farmers. By leveling the playing field, the code protects smaller producers and independent grocers, who often lack the bargaining power to challenge the demands of massive corporations. A key feature of the rollout is the activation of a formal dispute resolution mechanism, overseen by the Office of the Grocery Sector Code of Conduct (OGSCC), allowing members to submit formal complaints and seek adjudication for violations.
While the primary objective of the code is to regulate business-to-business (B2B) dealings rather than direct consumer prices, experts suggest that a more predictable supply chain could eventually benefit shoppers. By reducing the friction and “price volatility” caused by disputes between grocers and manufacturers, the code may foster a more competitive environment with increased product choice and innovation. Canada joins nations like the United Kingdom and Australia, which have successfully implemented similar codes to manage highly concentrated grocery markets. Government officials have warned that while the code is currently voluntary, they remain prepared to make it mandatory should any major industry players fail to adhere to its principles of fair and ethical dealing.
