Class action against bread producers

2010-11-22 15:07

Four organisations are launching a class action in the Cape High Court against producers found to have colluded in fixing the price of bread, the Black Sash said today.

“The four organisations (along with five individual consumers) are launching a massive consumer class action against bread producers Pioneer Foods, Tiger Consumer Brands and Premier Foods following the Competition Commission’s findings that they all participated in a cartel that colluded to fix the price of bread,” said Black Sash in a statement.

Black Sash, the Congress of SA Trade Unions (Cosatu) in the Western Cape, Children’s Resources Centre and the National Consumer Forum will apply to the court tomorrow.

“The action is unprecedented – it’s only the second ‘class’ action to be undertaken in South Africa – and the first of its kind to seek actual damages, and on such a large scale,” said Black Sash.

Nkosikhulule Nyembezi, Black Sash’s advocacy programme manager, would not say how much they were looking for in damages or who it would be paid to. He said this would all be explained in the court documents and arguments.

Earlier this year, the Competition Commission found the bread producers had colluded to fix the selling price of bread and to allocate markets amongst themselves.

The hearing will begin at 10am.

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