Canada: Criminal Charges Filed Against Nestle, Mars In A Price Fixing Cartel

by
Fatimah Mazhar
An independent law enforcement agency in Canada has alleged that Nestle and two other companies are involved in fixing the price of chocolate confectionery products and has filed criminal charges against them.

Nestle

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An independent law enforcement agency in Canada has alleged that Nestle and two other companies are involved in fixing the price of chocolate confectionery products and has filed criminal charges against them.

The agency, the Competition Bureau released a report on Thursday announcing that criminal charges have been laid under the ‘Competition Act’ against three companies Nestlé Canada Inc. (Nestlé); Mars Canada Inc. (Mars); and ITWAL Limited (ITWAL) which is a national network of independent wholesale distributors in Canada.

John Pecman,Interim Commissioner of Competition said in the report, “Price-fixing is a serious criminal offence and today's charges demonstrate the Competition Bureau's resolve to stop cartel activity in Canada.”

There have been many instances when major corporations involve in fix-pricing to maintain their monopoly in the market. But since it is a criminal offence in Canada in this case, it sure is going to cause a little trouble for the reputation of the companies whose names have been disclosed in the allegations.

But we have seen that not much damage was ever caused as such. Usually big companies get away with murder by paying (or not paying) fines. Or in other cases the trials just go on for a really long time. Nestle, one of the companies named by the Competition Bureau has had a history of court cases. Several cases have been reported against the company including the one filed last year by a Chicago-based company over the allegations that Nestle was selling tap water in bottles as naturally spring-sourced. And Nestle is still operational. So this might just be the case in Canada as well. Let’s see.

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