Minimum advertised pricing (MAP) policies have come under the Competition Bureau’s microscope. The Bureau announced on September 28, 2026, that it has launched an investigation into whether MAP policies in the grocery sector are limiting competition among grocers and keeping lower prices out of reach for consumers.
A MAP policy sets the lowest price at which a retailer may advertise a product. A retailer may still be able to sell below the MAP price, but it cannot advertise that lower price in flyers, websites, apps, social media, or other advertising.
What Is the Bureau Worried About?
According to the Bureau, MAP policies may:
- make lower prices harder for shoppers to find and compare;
- reduce retailers’ incentive to discount;
- put discount grocers and new entrants at a disadvantage; and
- make it easier for retailers to align prices rather than compete.
The Bureau is asking consumers, retailers, suppliers, distributors, and manufacturers to share information about how MAP policies are introduced, communicated, monitored and enforced, and how they affect pricing and promotions.
The Bureau’s renewed focus on MAP policies is noteworthy. Despite their widespread use across many industries, MAP policies have not been the subject of Bureau enforcement action under the current price maintenance provisions of the Competition Act. This lack of enforcement is likely because any effect of a supplier’s MAP policy is typically limited by the effect of the pricing of competing products.
The Legal Takeaway
MAP policies are not inherently unlawful under the Competition Act. Rather, the key question is whether the policy has the effect of harming competition.
MAP policies can have legitimate commercial objectives, including preventing free-riding where one retailer benefits from another retailer’s investment in promoting or supporting a product without making the same investment itself, and promoting competition between brands. While the Bureau recognizes these well-established rationales, it has nevertheless stated its view that these justifications “do not apply in retail grocery.” That conclusion seems premature, particularly given that the Bureau is only now seeking stakeholder input on how MAP policies function and may affect competition in the sector.
Why Businesses Should Pay Attention
While the Bureau’s immediate focus is the grocery sector, the implications are potentially much broader. Businesses that use MAP policies or other pricing practices that impact resellers price advertising or sales price are on notice that these types of practices are on the Bureau’s radar and may be subject to increased scrutiny going forward.
Practical Steps
- Review existing MAP or resale price policies, including how they are communicated, monitored, and enforced.
- Document the commercial rationale for any restrictions and ensure they are supported by the facts.
- Assess whether the policy could have an anticompetitive effect.
- Consider whether a less restrictive approach could achieve the same legitimate objective.
- Train sales and commercial teams on pricing communications and reseller relationships.
What Comes Next?
The Bureau’s call for information will support both its grocery sector MAP policies investigation and its broader examination of competition across Canada’s food supply chain. For businesses using MAP policies, now is a good time to pressure-test both the policy and the paper trail behind it. Grocery sector businesses should also be prepared for potential outreach from the Bureau (in particular, those who have MAP policies in place).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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