CanadaIs it legal for a supplier to force retailers to sell at a specific minimum price?
No, it is generally illegal for a supplier to force retailers to sell at a specific minimum price in Canada under the Competition Act’s price maintenance provisions.
What the Law Says
The Competition Act prohibits suppliers from engaging in 'price maintenance' — that is, trying to control the resale price of goods by pressuring retailers.
Section 76 of the Competition Act makes it illegal for a supplier to attempt to influence a retailer's pricing decisions upward — for example, by threatening to cut off supply, offering incentives to maintain high prices, or refusing to deal unless a minimum resale price is observed.
This applies even if the supplier does not succeed in changing the retailer’s price — the mere attempt using prohibited means is enough to breach the law.
The provision targets conduct that harms competition by reducing price competition among retailers, potentially leading to higher prices for consumers.
Statutory TextProhibits attempting to influence upward or discourage reduction of prices by threats, promises or refusal to supply.
— Competition Act, s. 76 — Price maintenance
What to Do
Do not agree to or comply with any supplier demand to maintain a minimum resale price.
Document any threats, promises, or refusals to supply tied to pricing conditions.
Report suspected price maintenance to the Competition Bureau via their online complaint form or hotline.
Seek legal advice before entering into distribution agreements that include pricing terms.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.