Nestle and Mars may face $10mn fine for 'chocolate conspiracy'
Published time: June 07, 2013 11:37
AFP Photo / Olivier Morin
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
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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