Chocolate Lawsuit Stinks Like Hershey Highway Robbery
Think you’re paying too much for a candy bar? Regional grocer Giant Eagle does, and they’re suing the manufacturers to put a stop to this chocolate chicanery.
Hershey Co., Mars Inc., Nestle SA and Cadbury Schweppes Plc are accused of fixing chocolate candy prices in the U.S. in a lawsuit filed by a Pittsburgh supermarket chain.
Giant Eagle Inc. claims in a suit filed March 26 that the companies and a Canadian wholesalers’ network, Itwal Inc., conspired to set artificially high prices for chocolates in violation of U.S. antitrust law.
The companies’ profits have fallen “because of increasing health concerns, and changing consumer preferences,” Giant Eagle claimed in its complaint, filed in federal court in Pittsburgh. “In the face of waning demand, defendants responded by instituting uniform parallel price increases” in the U.S. beginning in 2002, Giant Eagle claimed. (Ed.: emphasis mine)
Giant Eagle said in the complaint that it paid more than $200 million to buy chocolate bars, boxed chocolates and seasonal chocolate candy from the companies since 2002, at illegally inflated prices. Giant Eagle seeks unspecified damages, which may be tripled under antitrust law if the claim is successful.
More here. Suit here (PDF). The U.S. Dept. of Justice is also probing alleged price fixing by chocolate makers.
My 2 cents? Giant Eagle is full of crap. By noting chocolate bars’ “health concerns” and “waning demand,” the suit does nothing but tarnish the very products Giant Eagle sells. Sour grapes, if you ask me.
If the candy costs you too much, is unhealthy, and doesn’t sell very well, why the hell are you selling it, Giant Eagle? As for the U.S. government, the idea that there is such a thing as chocolate price fixing, and that this is something government attorneys would need to concern themselves with, shows just how big Big Brother really is.
2 comments posted
Posted by: Dog's New Clothes - 04/02/2008
That’s a pretty gross headline.
Posted by: Alex - 04/03/2008
This guy found a bottle on the ocean, and he opened it and out popped a genie, and he gave him three wishes. The guy wished for a million dollars, and poof! there was a million dollars. Then he wished for a convertible, and poof! there was a convertible. And then, he wished he could be irresistible to all women… poof! he turned into a box of chocolates
Nice Post Anyway
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