During a Nunavut debate on the Nutrition North Canada program, NDP incumbent Lori Idlout accused The Northwest Company of exploiting the program for excessive profits, suggesting the retailer is prioritizing profits over the needs of vulnerable communities.

The North West Company is facing its second lawsuit in less than a month over allegations that its product pricing may be exploitative, potentially taking advantage of remote communities relying on essential goods.

The North West Company faces a potential class-action lawsuit over allegations that it has retained millions in Nutrition North subsidy funds—which were intended to lower food prices for remote, predominantly Indigenous northern communities—instead of passing the full benefit to consumers. The suit claims the misconduct has contributed to food insecurity and adverse health outcomes in these vulnerable communities.

The North West Co. has refuted claims in a potential class action lawsuit alleging that it misappropriated over $163 million in federal subsidies from the Nutrition North Canada program. A company spokesperson emphasized that the company fully participates in third-party audits and ensures that 100% of the funds received are passed on to consumers.

Three Inuit women have initiated a lawsuit alleging that The North West Company unlawfully retained millions of dollars in federal subsidy funds from the Nutrition North Canada program, funds that are intended to lower food prices and improve food security in northern Indigenous communities.

Lawyers representing Inuit communities in Nunavut and Nunavik have filed a statement of claim alleging that North West Company retained federal Nutrition North subsidy funds meant for consumers, rather than passing on 100% of the subsidy. The claim argues that this practice, coupled with allegedly inflated pricing in its stores, deprives vulnerable northern communities of full financial relief, contributing to broader health and welfare issues.

A proposed class-action lawsuit alleges that North West Company, which holds a monopoly in many northern communities, intentionally retained a portion of federal subsidy funds intended to lower grocery prices under the Nutrition North Canada program. The claim, filed on February 5, 2025, argues that by inflating original prices and not passing the full subsidy on, the company has harmed consumers by reducing their ability to afford healthy food, thereby impacting public health in already vulnerable regions.

Amid a controversy over the Nutrition North Canada program, The Northwest Company has asserted that it fully passes along 100% of the federal subsidy to consumers. However, investigations and local price comparisons in some northern communities have raised concerns over potential market dominance and inconsistent pricing, suggesting that in certain cases consumers may not be receiving the full benefit of the subsidy.

A Deloitte compliance assessment, conducted between February 23 and February 27, 2015, evaluated The Northwest Company's adherence to the government funding agreement under the Nutrition North Canada program. The report confirmed that the company appropriately passed on the full benefit of the subsidy to consumers while offering recommendations to further improve its internal control environment.