Question Period Note: GROCERY CODE OF CONDUCT

Q1 – Has the Grocery Code of Conduct been adopted? Q2 – How will governments support the Grocery Code after its implementation? Q3 - Will a grocery code of conduct impact food prices? Q4. Will compliance with the Grocery Code be enforceable? Q5 – Why is the Government not imposing a mandatory code of conduct?

R.1 - The office supporting the Grocery Code is now operational with full implementation and enforcement expected to start by January 1, 2026.
The Office is accepting new members, with all major retailers continuing to express their intention to sign on to the Code. R.2 - FPT Ministers of Agriculture agreed to provide $1.2 million in short-term funding to support the Office of the Grocery Sector Code of Conduct for a period of two years. After this initial period, the Office is expected to be fully self-financed by industry.
The principles and implementation details of the industry-led grocery Code of Conduct have been negotiated by industry separate from government.
However, the Federal Government will continue to actively engage with the provinces and territories to monitor the Grocery Code, including by discussing the review of the Code’s implementation which will be conducted by the Office of the Grocery Sector Code of Conduct 18 months after its implementation to assess progress and determine if structural changes are needed. R.3 - Many factors influence the prices consumers pay for food, including the international trade environment, labour costs, transportation, climate change and supply chain inefficiencies.
This is why it is extremely difficult to draw a direct link between any grocery code of conduct and increases or decreases in the price of food.
While a Grocery Code will not directly affect food affordability, it will improve predictability, transparency, and fair dealing in supply chain relationships, ultimately benefitting consumers. R.4 - Industry will be responsible for the implementation of the Grocery Code, including the signing on of members, and the development of a dispute resolution mechanism. This will ensure that retailers and suppliers work together to promote fair and ethical trading and contractual certainty.
While participation is voluntary, we are encouraged by the decision of all major retailers to join the Grocery Code.
The continued participation of all major grocers and suppliers is vital to its success. R.5 - We continue to believe that collaboration around an industry-led solution will yield the best outcome for the sector. The issues at stake are very complex and need to consider a wide variety of considerations and perspectives.
Experience in other countries demonstrates that the process takes time. The UK code began as a voluntary code before evolving into a mandatory code over 10 years.
 

In November 2020, FPT Agriculture Ministers agreed to create a federal-provincial-territorial (FPT) working group to clarify the impact of certain retail practices and explore potential solutions benefitting the entire food value chain. In July 2021, key findings of the FPT working group were presented to Ministers and released publicly. FPT Ministers called on industry to develop consensus on a proposal for a code of conduct and an approach to dispute resolution to improve predictability, transparency and fair dealing in supplier-retailer relations.
In August 2021, an Industry Steering Committee comprised of key industry leaders was established and provided periodic updates to FPT Ministers. A draft proposal for a Grocery Code of Conduct with a supporting office became public in May 2023 and was used to conduct a broad industry consultation. A draft code was submitted to the government in December 2023, but industry was not able to achieve a consensus at that time.
On July 18, 2024, industry confirmed that organizations across the supply chain, including all key suppliers, many regional and local independent grocers, and Canada’s five largest grocery retailers committed to joining the Grocery Sector Code of Conduct. Industry is aiming to fully implement the Grocery Code by January 1, 2026.
Following agreement from all major retailers to participate in the industry-led code, Ministers agreed to provide $1.2 million in short-term funding to support the Office of the Grocery Sector Code of Conduct.
On January 9, 2025, the Office of the Grocery Sector Code of Conduct announced the appointment of Karen Proud as the organization’s first President and Adjudicator, starting on March 17, 2025. Ms. Proud has extensive leadership experience in the retail and manufacturing sectors. She was President and CEO of Fertilizer Canada and previously held executive roles at Food, Health & Consumer Products of Canada and the Retail Council of Canada.
On November 28, 2025, the Office of the Grocery Sector Code of Conduct issued a press release noting the completion of its governance framework, including the Dispute Resolution Management Process, and a shift in focus on supporting broad participation from across the sector.
The Grocery Code is not expected to address concerns over rising food prices. However, it is expected to improve supply chain predictability, transparency and fair dealing.
Implementation of a code has been recommended in multiple Standing Committee reports since 2021 and the Competition Bureau Retail Grocery Market Study of 2023.

• Canada needs a grocery code of conduct to bring more fairness, transparency and stability to our grocery sector and supply chain.

• After years of work and unprecedented collaboration, I am pleased to see that the work to implement Canada’s first-ever Grocery Code is now complete.

• With the launch of the official recruitment campaign, the Office of the Grocery Sector Code of Conduct is ready to be operational starting January 1, 2026.

• This is a significant accomplishment, but the Code will only be effective with a broad membership. We now call on companies, especially Canada’s large retailers, to officially join the Code in short order and to demonstrate their commitment to a stronger and more transparent supply chain.