Charges Laid in Chocolate Price Fixing: Nestle, Mars, etc.

Charges laid in chocolate price-fixing case

Canada is going after chocolate bar manufacturers for price fixing.

The accused in a chocolate price-fixing case could face a bitter fate if convicted -- millions of dollars in fines for the companies and potential jail time for the individuals.

Canada's Competition Bureau said Thursday it is laying criminal charges against Nestle Canada Inc., Mars Canada Inc. and ITWAL Ltd., a network of independent wholesale distributors.

Also charged are former Nestle Canada president Robert Leonidas; Sandra Martinez, former president of confectionery for Nestle Canada; and David Glenn Stevens, president and chief executive of ITWAL.
The companies and individuals are accused of conspiracy under the Competition Act.

In separate statements, both Nestle and Mars said they intend to "vigorously defend" themselves against the charges. Both said the allegations date back to 2007 and earlier.

A statement from ITWAL was not immediately available.

Hershey Canada Ltd. said it has reached a settlement with the Competition Bureau that will see it plead guilty to one count of price-fixing, which is subject to court approval.


Read more: www.cp24.com...

Hershey will be pleading guilty to 1 charge dating from an incident in 2007... and Nestle and the rest seem to be taking the case head on with the Feds in Canada.


This was the first I heard of a government protocol that basically allows people to get off scott free so long as they turn in others involved:

The bureau found out about the alleged scheme through its immunity program, under which the first party to disclose an offence or provide evidence may receive immunity, provided it fully co-operates.
Subsequent parties that help out in an investigation may receive lenient treatment, as Hershey did in this case.


Read more: www.cp24.com...

It seems the entire incident is all stemming from 2007 and Hershey took advantage of the protocols in place which is why they seem to be pleading guilty and obviously why the others are planning to fight it:

The Competition Act's current conspiracy provision could mean a $25-million fine and/or imprisonment of up to 14 years.
But since the price-fixing took place before tougher rules were introduced in 2010 and came into effect in 2012, the accused in this case face a fine of up to $10 million and/or a prison term of up to five years.
Under the new rules, the Competition Bureau won't have to prove anti-competitive behaviour had an "undue economic effect on the market."
But since the chocolate price fixing took place in 2007, the bureau's case must pass that test. That makes it more complicated to prove the accused broke the law.


Read more: www.cp24.com...

I figured this would be of interest for obvious reasons.

Now, beyond the basic criminality.... The thing that I find so odd is... What's the difference between a person and a corporation committing crimes? And... Why is there such a massive difference between the treatment in either case?

Case in point, this corporation, one which has pled guilty... So now we should be able to call this a criminal organization. Heck, I should tell them I need them to get pardoned before I buy their products again!

Oh, and all those people who apply for work there... When they are asked if they have a criminal record, they should answer, "Not yet because you haven't hired me yet and I'm not a part of Hershey yet!"

This case is actually much different than I was expecting. For one, we barely ever see jail time offered up to corporations and their officers for criminal charges. The drug (pharma) industry cops to criminal charges all the time but usually the most severe punishment you see is fines being paid.

Should everyone involved go to jail, do not pass GO, do not collect $200??

I'd like to hear ATS opinion on this.






(Oh and price fixing?! Come now... out of all the controversies that come up, this is what might send executives to jail? Are you effing me? Kudos to Canada for their balls to take on a big corporation but seriously now... I would expect some kind of criminal charges in the common, widespread fraud in the banking industry. But for this? What about the power/gas industry? Why are chocolate bars being the main focus here and not some other more sinister or evil plot. Pharma releasing drugs that kill or maim people when fraudulently publishing data on their efficacy and safety...Something like that I could see. Was not expecting it for chocolate bars. Do I smell a money grab here? It smells like chocolate covered polymer bills!)

reply to post by boncho


I used to have a buddy I would argue with about price fixing being global in nature and across all industries. He was a business major and know it all. He would say over and over again demand determines price.



Gotta love brainwashed know it all's. From gas to chocolate the fix is in people. Why have price wars when they can band together and fix the prices.

So what happens when they start charging for air

Don't laugh too soon

What do you pay for water ?

Just a thought

Cody

Originally posted by SubTruth
reply to post by boncho

 

I used to have a buddy I would argue with about price fixing being global in nature and across all industries. He was a business major and know it all. He would say over and over again demand determines price.

Gotta love brainwashed know it all's. From gas to chocolate the fix is in people. Why have price wars when they can band together and fix the prices.

I will say to some degree that's true. However, if something had little demand or was solely purchased by whim, with more determining factors being price and availability then price fixing would be much harder.

I will say demand is just a small role though with how regulated the business sector is nowadays though. And as you said, across all industries.

Actually, something that needs to be looked at is the prepackaged drink market in Canada. Vitamin water, energy drinks and iced cappuchinos are north of 3 dollars. To me it's a prime time for a smaller guy to come in and launch a brand.

Perhaps they will just be bought out by Neslte et al.

Maybe not a win for the consumer, but definitely for whoever wants to make some money...

Big Cocoa strikes!
They get us hooked and they drive up the price. The pusher is a monster!

I wonder what would happen to the executives if this happened in China?

Also, when Chinese companies buy Western companies, will the Western execs also have to follow China rules?

With this price fixing case, it's nice to see some justice, but there's bigger fish to fry =)

And I doubt anyone will go to jail over this... But then again, they're not bankers.