A recent report by Canada's auditor general on the Nutrition North program found the federal government doesn't require retailers to provide it with the information required to prove the subsidy is being passed on.
Leesee Papatsie has been leading protests against high food prices for two and a half years, so far via picket lines. Now she's changing tactics to a boycott.
"They say they're passing on the savings, and that's totally bull," said Papatsie. "We know they're not telling the truth."
Derek Reimer, the North West Company's director of business development, says the company does pass savings from Nutrition North on to consumers.
"We understand that people have concerns about food security in the North, and it's a complex problem but we're trying to work on solutions," he said.
The North West Company is the biggest retailer in many communities in Northern Canada. It has stores from Alaska to Labrador.
The boycott is scheduled for Jan. 31.