Monday, June 10, 2013

Chocolate Scandal/Our World

Refuel and win?

Snicker if you will, but Canada has a scandal on it's hands. Well, actually we have quite a few at the moment (check out the CBC News website to see what I mean), but this is the scandal that's sure to speak to the minds and hearts of most Canadians.  Two chocolate companies (Nestle and Mars) have allegedly been in collusion with each other - meeting to price fix their products.

KitKat is made by Nestle in Canada (Hershey in the U.S)

Now I agree that Canada has been built on capitalism and that a company can charge whatever it wants for its products, especially if it's not a necessity. (But wait! Isn't chocolate a necessity? Maybe not.)

But price-fixing in Canada is a criminal offense. Nestle and Mars say they will vigorously defend themselves against the charges. Those found guilty could face a fine of $10 million dollars and up to five years in prison.

 Apparently not so guilty

The Competition Bureau recommends leniency for Hershey Canada, who is said to be cooperating. Canadian authorities have to prove that the companies agreed to price-fixing their chocolate and that this had a negative effect on the confectionery marketplace.

What do you think the outcome will be? Do you think fixing the price of chocolate  affects the economy?

More photos from Our World can be seen by clicking HERE.

39 comments:

Andy said...

Hershey used to have a manufacturing plant in Smith Falls, Ontario that employed 600 people. It was shut down and moved to Mexico to save on production cost. Greed is the best word to describe what they are accused of. I guess I shouldn't prejudge until all of the facts are in.
PS: Should they not include the oil companies for price fixing on the price of gasoline? Camera Girl you got my blood boiling today :-)

Nancy @ A Rural Journal said...

I've always found it odd that every gas station in my little town always have the same prices listed.

Buttons said...

Oh Andy said it so well I loved going to Smith Falls and I do not feel sorry for the poor chocolate price fixers but if they paid it off in free chocolate a true necessity to everyone I may forget it.:) MMMM free chocolate for all I am in. B

see you there! said...

Sometimes I think that ALL prices are fixed. I didn't know Hershey had moved their plant though.

Darla

Carver said...

Oh no, what a scandal. Chocolate is definitely a necessity.

Tanya Breese said...

now i want chocolate :D

Lowell said...

What? Do you mean to say that there are companies up in Canada that are just as crooked and nasty as companies in this country? Wow!

Let's hear it for corporate chicanery. (Yes, I'm very cynical!)

Maggid said...

to borrow from your readers . . "Chocolate Chicanery" - sounds like a great title -

I am sorry humankind has reduced itself to greed.

love & love,
-g-

Terri said...

I agree with the others..it's all about the money...greedy, greedy, greedy.

Gail Dixon (La.Belle) said...

I can see punishing gas price fixing or some other necessity...but chocolate? Where I have a problem is a nonprofit that pays its CEO millions a year, then that same CEO freezes pay for the common worker while continuing to lavish himself and his family with trips, office remodels, etc. That's when my blood gets to the boiling point.

Sandra said...

what a shock this is...now chocolate has joined all the others from gas and hospital prices to anything we want to name...refuel and win? yikes on that one.

Jill said...

NOT the chocolate too!!!!

TexWisGirl said...

yeah, i read that. if they are guilty, i hope they will be fined heavily! like andy said, it's just the tip of the iceberg.

Jan said...

These two are most likely guilty, but proving it could be difficult, unless there's a good paper trail.

Sinbad and I on the Loose said...

Oh no, just another thing to bear heavily on my mind. Is nothing sacred?

RedPat said...

Like Andy said - it is everywhere!

LONDONLULU said...

Oh corporate chicanery indeed! Sigh, it's not just the States then. I'm sure a $10mil fine is nothing to these companies, but maybe it'll help slow down future meddling with chocolate (which I agree is a need!)...

Pamela Gordon said...

I heard that on the news too. How crazy is that?? I love chocolate and often buy bars but they are a really ridiculous price these days aren't they?

Penelope Postcards said...

Truthfully … isn’t price fixing going on all the time? Why is it that gas stations all seem to raise and lower prices at the same time? With chocolates, however, there are always be more delicious puns to digest.

Pat said...

Oh no! They are taking advantage of all of us chocolate lovers. I am not opposed to capitalism, though. I am opposed to class envy.

Gary said...

The fines should be doubled because its chocolate we're talking here. Boom & Gary of the Vermilon River, Canada.

Linda Kittmer said...

I agree with Gary. They've crossed a serious line!

cieldequimper said...

It would be severely punished in Europe...

Hmmmm, this isn't real chocolate though! This is pretty bad for your health...

Fun60 said...

I'm sure they have been price fixing but no doubt they will get away with it.

Sylvia K said...

All boils down to being all about the money and it is disgusting! And, yes, I too, agree with Gary!!

eileeninmd said...

My family is seriously addicted to Hershey kisses. But, I think I would worry more about the price of gasoline being fixed.

Lowell said...

Hi EG! Re your comment on Silver Springs: When the park first opened, it was a huge attraction...but then Disney came along as well as numerous other, more exciting venues and attendance dropped at Silver Springs.

A few years ago, a company leased the place, but did not keep it up. The prices kept going up, though. I think it's $44.00 per day per adult now. And some of the main attractions have been shut down.

You are right - it is good the state is taking over as it will preserve the park in some fashion. But I will miss the good ol' days!

Photo Cache said...

may be i should visit the candy bar aisle once more to know how the pricing is around my neighborhood.

Susan said...

I can't even pretend to understand the market. But I bet if enough women march on City Hall, the chocolate companies will get their way! Wait a minute, I don't make sense there do I?

thatsthewaythecornbreadcrumbles said...

I would recommend no longer buying from either company. All of these companies are just so darn greedy they care not what they do to any economy.

PerthDailyPhoto said...

Honestly, you really can't trust anyone these days EG :) Mmmmmm! I wasn't thinking about chocolate until I read this, but now......!

Ruth's Photo Blog said...

I have no opinion just bring on the chocolate. One must have some every day.LOL

Michelle said...

Unfortunately, it is all about the money. Most things are. Sad to say.

amanda | wildly simple said...

Interesting!
Honesty & chocolate are two things I am fond of.
I'm glad you brought my attention to this so I can follow along!

Dana said...

I had no idea that was going on. I'm just drooling over the chocolate. (Darn diet! LOL)

Have a happy Tuesday!

Viola said...

We have snickers here too. but the other two are not common to me..

Stephanie said...

Just wish they leave it alone on the price fixing.

kelley jensen said...

they have us where they want us--we'll pay anything to have our chocolate. :D

Sue said...

Dastardly deeds.

;)

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East Gwillimbury is a rural town less than an hour north of Toronto, Canada's largest city. My family calls me CameraGirl because I take my camera with me wherever I go.