Class action against bread producers

2010-11-22 16:12

Johannesburg - 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 on Monday.

"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 the Black Sash.

Black Sash, Cosatu in the Western Cape, Children's Resources Centre and the National Consumer Forum will apply to the court on Tuesday.

"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 was being looked for in damages or who it would be paid to.

He told Sapa this would all be explained in 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 among themselves.


  • Louise - 2010-11-23 00:00

    Excellent. Fines are nothing to these scaly companies.

  • Picasso - 2010-11-23 07:17

    If this case is won, who whould get the money?

  • John - 2010-11-23 08:02

    BRAVO for this! Bread has been taken literaly out of the hungry's mouth. May they succeed in their class action. Thank you for all the roleplayers who have the guts to stand up against these greedu giants.

  • reality check - 2010-11-23 08:07

    - I dont understand the motivation behind this action. It screams of a political agenda. If any class action is justified it ought to be against the biggest culprits like Eskom,the oil companies and the cellphone operators.

  • max silver - 2010-11-23 08:25

    Odd.No comments on any stories today?

  • Max - 2010-11-23 09:27

    This is the best thing since the 94 elections. I would like to take part, how do I do it Max

  • Davey - 2010-11-23 10:01

    I smell a rat. What can the outcome be? Lawyers richer, food companies poorer, and the mam in the street with zero benefit to show.

  • Kronus - 2010-11-23 10:28

    I agree with "reality check" that similar actions should be instituted against the likes of Eskom. However, I see the sense in going after bread producers because their actions have a direct impact on the poorest of the poor. Hopefully any settlement money will actually benefit the under privileged. I'll be following this story with great interest.

  • Derrick - 2010-11-23 11:53

    I agree with everyone they should be punished. But think about it, fining the company only affects the share holders at the end of the day. Being fined or sued for say R100 million, only means they got R100 million less to pay salaries. They retrench people and we back to square 1. They've paid there fines, so just drop the subject.

  • Bread crumbs - 2010-11-24 08:30

    Forget about the class action. The question is :"What did the competition board do with the hefty fines paid?"-in pockets of more corrupt state officials...?

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