Letters from CAMP: Food Monopolies
Canadian Anti-Monopoly Project
CAMP is fighting for a more democratic economy
Welcome to Letters from CAMP, a newsletter on anti-monopoly activity in Canada and abroad, brought to you by the Canadian Anti-Monopoly Project . In this installment we have:
Let's dive in.
How Monopoly is Eating the Canadian Food System
Out this week, CAMP’s latest report, From Plow to Pantry , shows how everything from seeds to supermarket shelves in Canada is in the iron grip of just a handful of companies. The report is the latest in our work highlighting the dangers of this unchecked corporate consolidation in every corner of the economy. Far beyond the checkout counter, at each step of the supply chain, starting from equipment, seeds, and fertilizers, large corporations wield significant power, leaving farmers and consumers with fewer options and higher costs.
Canadians are already too familiar with the consequences in retail grocery, where decades of consolidation have made the marketplace less competitive. But our report shows the additional costs of consolidation, stifling innovation and squeezing out smaller players, making the food system vulnerable to supply disruptions and price gouging. The cost of living crisis has brought renewed attention to competition in the grocery sector, but Canadians need to go deeper to truly have a fairer food system.?
With a renewed focus on competition policy, there’s hope for change. CAMP has advocated for new tools and frameworks to challenge monopolistic practices and bring fairness back to the food system. By preventing further consolidation, enforcing stronger competition laws, and tackling unfair competitive practices, we can build a food system that serves everyone—not just the corporate giants.
Private Equity's Bedside Manner
Another one of Canada’s storied financial institutions received a mark on its reputation this week. The Toronto Star broke that Orpea, a French operator of nursing homes had reportedly mistreated residents in its care homes across Europe before going bankrupt. The twist? Canada’s largest pension fund, CPP Investments had a major stake in the company.
Unfortunately the Orpea is a microcosm of what happens when major investors and private equity get into the care business. A 2021 economic study showed that the rise in private equity in American nursing homes had led to lower standards of care and higher prices for residents. But this phenomenon isn’t limited to nursing homes. Across Canada, private equity firms have been quietly buying up retirement homes, veterinary clinics, and local dental practices.?
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CAMP fellow and ex-private equity lawyer Rachel Wasserman has been studying these trends and warned on this week’s episode of the Globe and Mail’s Lately podcast that private equity’s focus on short-term profit is hollowing out important sectors of the economy. Wasserman will explore these trends in a forthcoming paper for CAMP, but in the meantime the podcast provides a great overview into the private equity playbook and its societal impact.
??What We’re Reading??
The FTC’s Click-to-Cancel Commonsense
This week the U.S. Federal Trade Commission (FTC) introduced a new "click-to-cancel" rule designed to make canceling a service as easy as signing up for it. The rule is an important and obvious consumer protection win that Canada should emulate as soon as possible. Effective in 180 days, the rule will require companies to provide a simple, straightforward way for consumers to end their recurring subscriptions.
Dark patterns and convoluted cancellation flows have long been a tool for companies to quietly extract more money from unsuspecting consumers. Negative option billing—where a subscription continues unless the consumer takes action to cancel—has been a thorn in the side of many, with complaints only increasing in recent years. The new FTC rule prohibits misleading practices and ensures consumers have a clear understanding of what they’re signing up for, and how they can get out of it. Canadian and American consumers both pay the cost of these exploitative practices, and without action up north Canadians are stuck calling in to a phone line that no one picks up if we ever hope to get out of the gym memberships we haven’t been using.?
This new rule is not just about convenience; it’s about commonsense. By making it easier to cancel unwanted subscriptions, the FTC is striking a blow against private regulation by corporations that says canceling a service should be a headache. CAMP will continue to push for similar protections because Canadians deserve a market that respects their choices and values their time.
If you have any monopoly tips or stories you'd like to share, drop us a line at [email protected]