Chocolate Makers Face Price-Fixing Allegations
The attorneys at Carey & Danis are looking into claims that chocolate manufacturers sweetened their bottom lines by engaging in a price-fixing scheme that may have unfairly increased costs for wholesalers, retailers, the corner candy store and consumers.
Last November, Canada’s Competition Bureau searched the offices of several candy makers as part of a pricing probe. Search-warrant affidavits submitted by Canadian investigators alleged that top executives of the Hershey Co., Mars and Nestlé met in coffee shops and restaurants and at conventions to set prices.
In February, the German Federal Cartel Office raided the offices of seven chocolate makers, many of the same ones already under investigation in Canada.
While the U.S. Department of Justice has not confirmed that it has started an investigation, several companies have admitted that they have been contacted by federal investigators.
Antitrust lawsuits have been filed on behalf of wholesalers, retailers and consumers. The suits allege that although the costs of the raw materials used to make chocolate have increased over the past several years, chocolate sales have been flat and that, in an effort to boost profits in the face of this trend, several chocolate makers allegedly formed a cartel in 2002, exchanging confidential pricing information by way of e-mail, telephone conferences and face-to-face meetings. The alleged purpose was to coordinate artificially high price increases within the industry, a violation of antitrust law. The suits allege that the cartel has raised prices three times since 2003.
The companies that are defending price-fixing suits include: The Hershey Co., Hershey Canada, Mars, Mars Canada, MasterFoods USA, Nestle S.A., Nestlé USA, Nestlé Canada, Cadbury Schweppes Americas, Cadbury Adams USA, Cadbury Adams Canada, ITWAL Ltd.
If you, as a wholesale company, retailer or consumer, purchased chocolate from any of these companies as far back as 2002 and would like to discuss your rights, contact Carey & Danis toll-free at 800-721-2519 or fill out our online contact form.
Carey & Danis is a national law firm that has recovered more than $695 million through litigation, including individual settlements of over $10 million and class-wide settlements of more than $90 million.
