Posted by & filed under Ethics, Financial Accounting.

Description: Canada’s Competition Bureau has launched an investigation into alleged price-fixing in Canada’s bread industry. Experts appeared surprised by the news, given the recent deflationary trends in the bread and rolls category. But the investigation reportedly stretches back as far as 2001, so it will be interesting to see what emerges.

Date: November 1, 2017

Source: thestar.com

Link: https://www.thestar.com/business/2017/11/01/competition-bureaus-bread-price-fixing-probe-leaves-experts-surprised.html

Discussion Points:

1) Are you a regular purchaser of bread? Have you noticed any price trends in your own grocery shopping?

2)  What would be the ethical considerations around price fixing?

3)  Wiley’s Financial Accounting: Tools for Business Decision Making discusses the terms profit margin and gross margin. Why do you think margins are so slim in the grocery business?

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