Walmart slapped higher prices on 1L milk cartons than permitted by Manitoba law
Walmart lowered prices after CBC News started asking questions
Walmart Canada was recently selling one-litre cartons of milk in Manitoba stores for higher prices than provincial law allows.
The grocery chain was spotted at provincial stores and online selling one litre of Beatrice milk for $2.88, despite the province limiting the price to a maximum of $2.03 for 2% milk and $1.97 for 1% milk.
Kate Kehler, an advocate for people with low incomes, said Walmart owes its customers an explanation.
"It's a large chain. They ought to know the rules," said Kehler, executive director of the Social Planning Council of Winnipeg.
"And if they don't, they need to find out how that how that happened."
Walmart apologized on Wednesday "for any inconvenience," saying an error occurred on Feb. 13 "when executing a price change in our system."
The chain also said customers impacted by the mistake can receive refunds for the extra amount they paid if they return their milk to the store with their receipt. They can contact the Customer Care team at 1-800-328-0402 if they have questions.
Price dropped after CBC inquiries
The company said it immediately worked to rectify the mistake after it became aware of the issue on Sunday, the day CBC News began asking questions about the price.
By Monday, the price had reverted to a cost just below the provincial maximum on Walmart's app.
Walmart didn't address CBC's questions until after the story published on Wednesday morning.
In an interview before Walmart's apology, Kehler said it's incumbent on the company to fully explain what happened and to make amends. She compared the possible remedy to Loblaws customers getting a $25 gift card as compensation for the bread price-fixing scandal in the early 2000s.
"If a mistake was made, then a mistake was made, and they're going to have to do something to make it up to people," Kehler said.
Manitoba Agriculture Minister Ron Kostyshyn said Tuesday he's instructed his department to examine the issue. He said he couldn't speak about next steps before understanding what happened.
Provincial law dictates anybody who violates the Milk Prices Review Act can be fined $500 to $5,000.
The current restrictions only impact homogenized, 2%, 1% and skim milk in one-litre containers.
Other types of milk, such as oat or lactose-free, aren't impacted by the price controls.
Kehler wants a cap on the price of bigger cartons of milk as well, especially at a time when people are struggling to make ends meet.
"Buying a litre of milk at a time is the most expensive way of buying milk," she said. "It would be good if [the province] looked at all of them."
Kostyshyn said any potential changes would require discussions with the government and supply management officials, while explaining the current price limit on one litre of milk is a priority for the province.
Other stores have also been caught charging more for milk than what is allowed by law.
A 2013 investigation from CBC News found some downtown Winnipeg stores overcharging for one-litre cartons of milk, prompting the former NDP government to promise a review of the practice.
Kostyshyn, who was also agriculture minister at the time, didn't have an answer Tuesday to a question about the results of the review.
Kehler said the Social Planning Council of Winnipeg noticed in 2022 that a 7-Eleven location was charging too much for one-litre milk cartons. It brought the issue to the store's attention and the price was reduced.
The set price for milk is usually amended annually in the province. This February, the price in each of the four categories dropped by one cent.
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With files from Kristin Annable, Sanuda Ranawake