Ban on Grocery Store Blocking Clauses

Summary#

This bill aims to stop land and lease rules that block new grocery stores or supermarkets from opening. It targets “property controls” like restrictive covenants and exclusivity clauses that can prevent competition.

Key changes:

• New contract terms or land-title rules that block a grocery store or supermarket are no longer allowed.
• Most existing clauses that block grocery stores or supermarkets become invalid right away, unless the province grants an exemption in the public interest and not harmful to competition.
• Rules set by governments, zoning-only limits, and standard building/development schemes are not affected.
• Some older exclusivity clauses held by parties other than a supermarket are automatically changed to remove any ban on supermarkets.
• The law takes effect when it gets Royal Assent (becomes law).

What it means for you#

• Shoppers

  • You could see more grocery options in your area over time, especially in plazas or buildings where a past clause kept out competitors.
  • More competition may help on price, selection, and service.
  • Empty former grocery sites may be easier to reuse as new grocery stores.

• Small and independent grocers

  • Easier to find sites to open, even near an existing supermarket, because most “no-competitor” lease clauses will not be valid.
  • You may have more bargaining power when leasing space in shopping centres.

• Large grocery chains and related companies

  • You cannot add new exclusivity clauses to keep other grocers out.
  • Many existing clauses you hold will no longer apply unless the Minister exempts them.
  • Leasing strategies may need to change, since anchor exclusivity will be limited.

• Landlords and developers

  • You cannot include new clauses that block grocery uses. Review existing leases and land-title restrictions; many will no longer be enforceable.
  • You may seek an exemption from the province for older clauses, but only if they do not unduly hurt competition and are in the public interest.
  • Zoning-only limits and standard building/development schemes remain allowed.

• Local governments

  • Your zoning bylaws and standard development schemes are not changed by this bill.
  • Government-imposed covenants are excluded from the ban.

• Definitions (plain language)

  • Convenience store: small store under 280 m² (about 3,000 sq ft); these are not treated as “grocery stores” under the bill.
  • Grocery store: sells a wide range of food for at-home use.
  • Supermarket: a larger grocery store, at least 929 m² (about 10,000 sq ft).
  • Restrictive covenant/exclusivity clause: a contract or land-title rule that blocks certain businesses (here, grocery stores or supermarkets) from using a site.

Expenses#

Estimated annual cost: No publicly available information.

• The province may face some administrative costs to process exemption requests and issue regulations.
• No direct costs to cities are specified.

Proponents' View#

• Stops “land blocking” that can keep competitors out and reduce consumer choice.
• Could lower grocery prices by making competition easier.
• Helps reduce “food deserts” by making it easier to reopen or convert sites for new grocers.
• Encourages fairer market conditions, especially for small and independent grocers.
• Still allows normal zoning and building rules, and lets the province exempt older clauses that are harmless and in the public interest.

Opponents' View#

• Interferes with private contracts and property rights that businesses and landlords rely on.
• May make it harder to finance or plan shopping centres if anchor tenants cannot get exclusivity.
• Could lead to legal disputes over existing agreements that are voided.
• The Minister’s exemption power may create uncertainty about which older clauses stand.
• Definitions and boundaries (e.g., what counts as “related” or a qualifying grocery store) may need regulations to avoid confusion.