The Globe and Mail reports in its Saturday, Feb. 17, edition that the House of Commons committee studying food prices is urging Loblaw and Walmart to sign on to the voluntary grocery code of conduct or risk having it legislated.
A Canadian Press dispatch to The Globe reports that on Friday, the committee sent a letter to the chief executive officers of Loblaw and Walmart Canada. The committee believes that implementing the code right away is a crucial step to address the challenges faced by the food industry.
If one or both of the companies decides not to participate, "the Committee will not hesitate to recommend that the federal and provincial governments adopt legislation to make it mandatory," reads the letter signed by committee chairman Kody Blois.
The industry-created code seeks to create a set of rules for fair dealing in the negotiations between suppliers and grocers.
Both Walmart and Loblaw have said they will not sign the code as currently drafted, warning it could lead to higher prices for Canadians.
Asked for comment on the letter, Loblaw spokesman Catherine Thomas said the grocer's goal is to ensure the code is "in the best interest of everyone, particularly consumers."
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