Nestle and Mars may face $10mn fine for 'chocolate conspiracy'
Published time: June 07, 2013 11:37
Two food giants and a network of independent wholesalers have been blamed for the price-fixing of popular chocolate bars in Canada. A third company, Hershey’s Canada, could avoid fines for pleading guilty and cooperating with an investigation.
The alleged price-fixing involved chocolate bars sold across Canada from 2002 to 2008, including Kit Kat, Coffee Crisp, Aero, Twix, Snickers, Bounty and M&Ms, a spokesman for the Competition Bureau, Pierre Yves Guay, told AFP.
"It's difficult, however, to estimate the amount of the overcharging because of the complexity of the pricing in that market," he said.
Competition Commissioner John Pecman called their alleged actions "egregious anti-competitive behavior that harms Canadian consumers" and "a serious criminal offense”, according to reports.
Three individuals were also charged: Robert Leonidas, former President of Nestle Canada; Sandra Martinez, former President of Confectionery for Nestlé Canada; and David Glenn Stevens, President and CEO of ITWAL, Reuters reports.
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Financial Post
Criminal charges laid against Nestle Canada, other companies for chocolate price fixing
Armina Ligaya | 13/06/06 | Last Updated: 13/06/07 12:51 PM ET
More from Armina Ligaya | @arminaligaya
More from Armina Ligaya | @arminaligaya
Jason Adlen/BloombergNestle Canada is facing criminal charges for price fixing chocolate, along with Mars Canada.
Two of the world’s largest chocolate companies are among those facing criminal charges for allegedly conspiring to fix the price of chocolatey treats across Canada.
The charges, laid Thursday, come six years after Canada’s Competition Bureau launched an investigation into the allegations, and found evidence suggesting that a price-fixing cartel collaborated, agreed or arranged to set the prices of chocolate products.
Criminal charges have been laid against candy makers Nestlé Canada Inc. and Mars Canada Inc., and ITWAL Limited, a national network of independent wholesale distributors, after the competition bureau referred its evidence to the Public Prosecution Service of Canada.
Price-fixing is a serious criminal offence and today’s charges demonstrate the competition bureau’s resolve to stop cartel activity in Canada“We are fully committed to pursuing those who engage in egregious, anti-competitive behaviour that harms Canadian consumers,” said John Pecman, interim commissioner of competition, in a statement. ”Price-fixing is a serious criminal offence and today’s charges demonstrate the competition bureau’s resolve to stop cartel activity in Canada.”
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- Nestle and Mars may face $10 million fine for 'Chocolate Conspiracy' (aworldchaos.wordpress.com)
- Canadian chocolate bar prices fixed: Three companies face criminal charges, Competition Bureau reports (theprovince.com)
- Chocolate giants accused of price fixing; former Nestle president criminally charged (calgaryherald.com)
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- Sweet conspiracy? Nestle, Mars charged with chocolate price-fixing in Canada (ctvnews.ca)
- Mars and Nestle accused of price fixing (itv.com)
- Competition Bureau charges Nestle, Hershey, Mars with chocolate price-fixing (thestar.com)
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