September 20, 2013
Earlier this week, it was announced that four of Canada’s largest producers of chocolate had settled a Canadian price-fixing class action brought against them for $23.2 million (see: http://www.chocolateclassaction.com) in a case that has been ongoing now for some six years. Settlements have now been reached with Cadbury Adams Canada Inc., Hershey Canada Inc., Nestlé Canada Inc. and Mars Canada Inc. and approved by British Columbia, Ontario and Quebec courts.
The Competition Bureau’s criminal case against some chocolate manufacturers, however, is ongoing (Nestle, Hershey, Mars and distributor ITWAL Ltd. were first searched by the Bureau in 2007, which led to investigations and class actions in Canada, the U.S. and Europe). In this regard, on June 21, 2013, Hershey pleaded guilty before the Ontario Superior Court for its role in the price-fixing case and was fined $4 million (see: Hershey Pleads Guilty in Price-fixing Cartel). Criminal price-fixing charges have also been laid against Nestlé (and two former executives), Mars and ITWAL Ltd. (and its CEO) (see: Charges Laid in a Price-fixing Cartel in the Chocolate Industry) with criminal hearings expected to begin in October.
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