By Dalena Reporters l January 1, 2026
OTTAWA / TORONTO — As of Thursday, January 1, 2026, a long-awaited Grocery Code of Conduct has officially come into force in Canada, marking a new chapter in how major grocery retailers and their suppliers interact in an industry long beset by contentious fee disputes and public frustration over food pricing. The voluntary code, agreed upon by the country’s largest grocery chains and industry stakeholders, introduces formal standards for commercial dealings across the sector.
The Grocery Code of Conduct, governed by the newly established Office of the Grocery Sector Code of Conduct (OGSCC), is designed to bring greater transparency, fairness and predictability to business practices between grocers, suppliers, wholesalers and primary producers. The code includes explicit provisions governing the application of fees and penalties, and — for the first time — a formalised dispute resolution mechanism to address grievances when bilateral negotiations fail.
Under the new framework, retailers and suppliers can now file formal complaints if they believe another party has breached the code’s standards. Beginning in 2026, the OGSCC will also collect annual membership dues and release annual reports tracking sector-wide trends, systemic challenges and potential areas for improvement, which its proponents hope will nurture a more balanced industry over time.
Canada’s five largest grocery chains — Loblaw, Empire (Sobeys), Metro, Walmart Canada and Costco Canada — have signed on to the voluntary code, giving the initiative critical mass in a retail market where a small number of powerful players have historically dominated supply chains and pricing negotiations.
Commentators and industry participants note that the code emerged in response to years of friction arising from what suppliers described as unpredictable and opaque charges imposed by major retailers — including merchandising and promotional fees, as well as penalties related to delivery discrepancies. These issues were spotlighted during the high-inflation period after the COVID-19 pandemic, when public scrutiny of grocery pricing intensified.
Despite its debut, economists and sector observers cautioned that the code is not intended to directly lower grocery prices or control shelf-level costs for consumers. Instead, its focus is on improving business relationships and contractual clarity behind the scenes — a step that may indirectly influence price stability over the long term but does not mandate pricing changes at the checkout.
Some industry voices have suggested that enhanced transparency and fewer supplier disputes could eventually support smoother product rollouts or greater competition across smaller labels, but immediate consumer benefits will likely remain limited. The code’s effectiveness will hinge on compliance, broad sector participation and the willingness of signatories to adhere to both the spirit and letter of the new guidelines.
If voluntary compliance proves insufficient or if major players resist enforcement, the federal government has indicated it may consider legislating mandatory compliance in the future. For now, however, the code marks a significant first step toward a more structured sector governance regime in Canada’s grocery industry.