CHOCOLATE-MAKERS are in trouble again.
Now, both Canada and Germany are out to stop companies like Mars, Nestle, Kraft Foods, Cadbury and Hershey from antitrust activities.
Competition watchdog authorities are investigating these chocolate candy manufacturers and suggest that they have formed cartels, conspiring to keep prices artificially high for years.
Ethic Soup first wrote about chocolate price-fixing in a post 10 months ago. At that time, Mars, Hershey, Nestle and Cadbury controlled 75 percent of the U.S. chocolate market and had 87 different antitrust suits against them. They were accused of holding secret meetings where they conspired to raise chocolate prices.
PRICEFIXING SPREAD TO RETAILERS
Now other countries are joining the charge because the same thing seems to be happening in their countries -- only it's spread even further, involving retailers too.
Last week,The Globe and Mail (Toronto) reported that:
"Pretty much anyone who bought a chocolate bar between 2001 and 2008 is part of a class action lawsuit alleging that Canada's biggest producers of confectionery products conspired to keep prices artificially high for most of the previous decade."
In addition to alleging the companies conspired to fix the prices of chocolate products, the class action further alleges representatives of the companies held secret meetings to discuss prices and penalized stores that undercut the recommended retail prices by limiting the supply of chocolates available to them.